IFRS 5 (NCA Held for Sale) Flashcards
What does IFRS 5 aid?
Users of FS to understand company’s future operations
When can asset be classified as held for sale?
Available for immediate sale in its present condition
Sale is highly probable
What happens with NCA classified as held for sale?
It is not depreciated or amortised
Disclosure?
Single amount separately from other assets under current assets
A non-current asset held for sale shall be measured under? (Higher or lower)
Lower of its carrying amount AND FV - costs of disposal
If FV less costs of disposal are higher than carrying amount
No change
If FV less costs of disposal are lower than carrying amount
Impairment loss to be recognised
What happens immediately before initial classification as held for sale?
Asset measured in accordance with previously used standard (e.g. IAS 16)
What must be done for a sale to be highly probable?
Management committed to sell asset
Sale expected to be done within one year
Unlikely significant changes to plan are made or plan withdrawn
Actively locating a buyer
Asset marketed at a price reasonable in relation to its current fair value
Classification as held for sale and carrying value?
Depreciation is not included in the carrying value
How to calculate accumulated depreciation?
Original cost of sold machine - carrying
Impairment loss to be recognised in COS?
Carrying amount - (FVLCOD)
