IFRS 5 - Non current assets held for sale and discontinuing operations

Question 1

IFRS5 - When should non-current assets be classified as held for sale?

Answer 1

If it’s carrying amount will be recovered principally through a sale transaction rather than through its continuing use

Question 2

IFRS5 - What are the conditions that an asset can be classified as held for sale?

Answer 2

• It must be available for immediate use in its present condition
• It’s sale must be highly probable in the next 12 months of classification as held for sale

Question 3

IFRS5 - What is the most important determine whether held for sale?

Answer 3

12 month rule

If greater than 12 months, it cannot be held for sale