Non-Current Assets Held for sale

Question 1

Recognition criteria for Non-current assets held for sale

Answer 1

1. Probable the sale will occur with a year of the year-end
2. The assets are actively marketed for sale and mgmt has a plan for the sale
3. Mgmt commits to the plan to sell
4. Mgmt unlikely to change the plan for the sale
5. The asset is priced fairly for the sale
6. Available for sale in the present condition

Question 2

Measurement of non-current assets held for sale under IFRS

Answer 2

Lower of CV or FMV of the assets - cost to sell
No depreciation since the commitment to the sale
Classified as current assets

Question 3

What is discontinued operations

Answer 3

A component of an entity that is held for sale or disposed of

Question 4

What are the criteria for discontinued operations

Answer 4

One of
1. Acquired subsidiary with a view for resale
2. Separate major line of business/ geo. Area
3. Is par of a coordinated plan to dispose of the major line of business or geo area of operations
+
HFS criteria

Question 5

Held for Distribution to Owners

Answer 5

Same criteria as HFS,

Measured at lower of CV or FMV - costs to distribute

Question 6

ASPE difference with HFS

Answer 6

No classification as current unless sold before the F/S are completed. The assets are classified based on their nature