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IFRS 5 sets out requirements that specify the accounting treatment for assets held for sale, and the presentation and disclosure of discontinued operations.
IFRS 5 requires assets that meet the criteria to be classified as held for sale are:
measured at the lower of carrying amount and fair value less costs to sell;
not depreciated; and
presented separately on the face of the statement of financial position.
Additionally, the results of discontinued operations must be presented separately in the statement of profit or loss. IFRS 5 identifies three classes of item that might be described as held for sale. These classes are of an increasing level of sophistication: non-current assets; disposal groups; and discontinued operations.
Disposal group – a group of assets to be disposed of in a single transaction, and any liabilities directly associated with those assets that will be transferred in the transaction.
A disposal group may be a group of cash-generating units, a single cash generating unit, or part of a cash-generating unit. Some disposal groups might fall into the definition of a discontinued operation.
Classification and presentation
The classification and presentation requirements of IFRS 5 apply to all recognised non-current assets and to all disposal groups.
IFRS 5 requires assets that meet the criteria to be classified as held for sale are:
measured at the lower of carrying amount and fair value less costs to sell;
not depreciated; and
presented separately on the face of the statement of financial position.
Additionally, the results of discontinued operations must be presented separately in the statement of profit or loss. IFRS 5 identifies three classes of item that might be described as held for sale. These classes are of an increasing level of sophistication: non-current assets; disposal groups; and discontinued operations.
Disposal group – a group of assets to be disposed of in a single transaction, and any liabilities directly associated with those assets that will be transferred in the transaction.
A disposal group may be a group of cash-generating units, a single cash generating unit, or part of a cash-generating unit. Some disposal groups might fall into the definition of a discontinued operation.
Classification and presentation
The classification and presentation requirements of IFRS 5 apply to all recognised non-current assets and to all disposal groups.
