Noncurrent Held for Sale and Discontinued Operations Flashcards
Based solely on its intention, an entity may classify a noncurrent asset as held for
sale.
False, they must meet the criteria
Anoncurrent asset that is to be abandoned shall not be classified as held for sale.
True
To be classified as held for sale, the noncurrent asset shall be sold within one year
from the reporting date.
False, from the reclassfication date
To be classified as held for sale, the noncurrent asset shall be immediately available
for sale based on its current condition.
True
In case the noncurrent asset held for sale was not sold within the one-year period,
it shall be automatically reclassified back to its previous classification.
False
On initial recognition, noncurrent asset (or disposal group) held for sale shall be
measured at its fair value less costs to sell.
False, lower of fair value less cost of disposal and carrying amount
If, on the reporting date, the fair value less costs to sell of a noncurrent asset held
for sale becomes lower than the asset’s Rayne amount, a further amount of
impairment loss shall be recognized.
True
The previously recognized impairment losses for noncurrent assets held for sale
shall not be reversed during the current and subsequent periods.
False
Noncurrent asset (or disposal group) shall not be subjected to depreciation or
amortization during the time it is classified as held for sale.
True
Ifa noncurrent asset held for sale does not meet the criteria to be classified as such,
it shall be reclassified out of held for sale category and shall be measured at the
lower of its value in use and fair value less costs to sell.
False, lower of recoverable amount (value in use and fv less cost of disposal) and the carrying amount before classification
Income (loss) from discontinued operations shall be separately presented as a single post-tax amount in the entity’s statement of comprehensive income.
True
