Non-current assets held for sale and discontinued operations

Question 1

An asset held for sale is one where the

Answer 1

carrying amount of the asset will be recovered primarily from a sales transaction rather than continuing use

Question 2

Assets held for sale rules

Answer 2

Marketed at fair value
Active programme to locate buyer
Present separately on statement of financial position as current asset
Sale expected within 12 months
Committed management plan to sell
If revaluation model used, revalue to fair value before reclassification
Stop depreciation once reclassified
Must be available for immediate sale in present condition and sale must be highly probable
Measure at lower of:
– Carrying amount
– Fair value less costs to sell

Any loss goes to P+L

Question 3

Discontinued operations are

Answer 3

A component of entity that has been:
disposed of
classified as held for sale
abandoned