T9 Non-current assets held for sale and discontinued operations Flashcards
What is IAS 5?
Non-current Assets held for sale and discounted operations
What is the object of IAS 5?
Specify teh accounting for assets held for sale and teh preperation and disclosure of discounted operation.
What is a asset held for sale?
An asset is classified as held for sale if it’s carrying amount will be recovered principally through the sale transaction rather than through continuing use.
How do we recognise if an asset is held for sale?
Management commited to the sale.
Available for immediate sale in its present condition
Actively marketed
Sale of the asset is highly probable. Offered at a reasonable price.
Sale must be expected to be completed with in one year.
NCA in held for sale is classed as a current asset. and will not be depreciated.
What is a discounted operation?
We do a seperate presentation for the discountinued operations on the P&L to show full disclosure.
A major componant that has been disposed of or classed as held for sale.
It is part of the single co-ordinated plan to dispose of a seperate major line of business or geographical area of opertaions.
Is a subsidiary aquired exclusively with a view to resale.
How does IAS 5 linked to the framwork?
Becasue fo the non current assets beign part of the framework and also the framework also states when income and expenses from assets and liabilities should be recognised and this links to our discounted operations. also the presentational requirements of IAS 5 helps the user of the financial statements to obtain relaible, relevent information which is fairly represented.
