Non-Current Assets Held for Sale and Discontinued Operations

Question 1

In order for a non-current asset to be classed for held for sale, must the asset be available for immediate sale in its present condition?

Answer 1

Yes

Question 2

When must the sale be expected to be completed by for a non-current asset to be classed as held for sale?

Answer 2

Within one year from the date of classification

Question 3

For a non-current asset to be classed as held for sale, must there be a buyer located?

Answer 3

No, but there must be an active programme to locate a buyer and the company must be committed to a plan to sell the asset

Question 4

For non-current assets that qualify as held for sale, what should they be measured at?

Answer 4

The LOWER of:
Carrying amount
Fair value less costs to sell

Question 5

Where are non-current assets held for sale shown on the accounts?

Answer 5

Presented separately on the face of the statement of financial position under current assets

Question 6

Are non-current assets held for sale depreciated?

Answer 6

No