NCA held for sale and discontinued operationsch 8

Question 1

When is an asset classified as HFS?

Answer 1

When substantially all of the recoverable amount is expected to be received principally from sale rather than from continued use.

Question 2

An asset can be recognised as HFS if:……

Answer 2

IF it sis available for sale in its CURRENT CONDITION and the sale is HIGHLY PROBABLE

Question 3

Does the standrad for HFS only apply to individual assets?

Answer 3

No. It applies to disposal groups as well. They can be entire CGUs, part of CGUs or a number of CGUs.

Question 4

How is the value of an asset HFS measured?

Answer 4

LOWER of carrying amount and FV less costs to sell. (Value in use is irrelevant since its not used)

Question 5

When an asset is no longer HFS and still owned by the firm it will be measured at….?

Answer 5

The LOWER of CARRYING AMOUNT before classified as HFS (less depre that would have taken place) and RECOVERABLE AMOUNT

Question 6

Discontinued operations is……?

Answer 6

a component of an entity that either has been disposed of or is currently HFS

Question 7

What does discontinued operations usually represent?

Answer 7

a separate major line of business or geographical area of operations.