NCA - Held for Sale / Discontinued Operations - IFRS 5

Question 1

Assets held for sale

Answer 1

If its carrying amount will be recovered principally through a sale transaction rather than through continued use.

Criteria :

• Management committed to sale
• Available immediately
• Actively marketed
• Sale highly probable
• Expected to complete with one year

Question 2

Accounting

Answer 2

Held at the lower of it’s carrying value and FV less selling costs.

Remove from NCA to CA Held for sale

• Asset classified held for sale will not be depreciated.

Question 3

Discontinued Operation

Answer 3

A component of an Entity that either has been disposed of or is classified as held for sale and:

• Represents a separate major line of business or geographical area of operations
• Part of a single co-ordinated plan to dispose of a separate major one of business or geographical area of operations
• Is a subsidiary acquired exclusively with a view to resale.