Yakub02
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Assets that are held for sale
Assets that are held for sale Sometimes, a company might hold an asset at the year-end that it has the intention of selling.
IFRS 5 Non-current assets held for sale and discontinued operations contain rules which impact the measurement and presentation of such assets. In summary:
Non-current assets (and groups of non-current assets) that meet certain strict criteria are classified as being held for sale.
Non-current assets that are held for sale are: subject to an impairment test;
presented on a separate category on the face of the statement of financial position; and
are no longer depreciated. Any loss recognised on a non-current asset carried at cost as a result of the impairment test at the date of its classification as ‘held for sale’ is recognised in the statement of profit or loss.
Any loss recognised on a non-current asset carried at a revalued amount as a result of the impairment test at the date of its classification as ‘held for sale’ is recognised in other comprehensive income (to the extent that it is covered by the previously recognised surplus on the same asset) with the balance recognised in the statement of profit or loss
Assets that are held for sale Sometimes, a company might hold an asset at the year-end that it has the intention of selling.
IFRS 5 Non-current assets held for sale and discontinued operations contain rules which impact the measurement and presentation of such assets. In summary:
Non-current assets (and groups of non-current assets) that meet certain strict criteria are classified as being held for sale.
Non-current assets that are held for sale are: subject to an impairment test;
presented on a separate category on the face of the statement of financial position; and
are no longer depreciated. Any loss recognised on a non-current asset carried at cost as a result of the impairment test at the date of its classification as ‘held for sale’ is recognised in the statement of profit or loss.
Any loss recognised on a non-current asset carried at a revalued amount as a result of the impairment test at the date of its classification as ‘held for sale’ is recognised in other comprehensive income (to the extent that it is covered by the previously recognised surplus on the same asset) with the balance recognised in the statement of profit or loss
