The measurement of non-current assets

[Yakub02]

The measurement requirements of IFRS 5 apply to all recognised non-current assets and disposal groups except for:

 deferred tax assets (IAS 12: Income Taxes).  assets arising from employee benefits (IAS 19: Employee Benefits).

 financial assets within the scope of IFRS 9: Financial Instruments.

 non-current assets that are accounted for in accordance with the fair value model in IAS 40: Investment Property.

 non-current assets that are measured at fair value less estimated point-ofsale costs in accordance with IAS 41:

Agriculture.  contractual rights under insurance contracts as defined in IFRS 17:

Insurance Contracts. Comment on the scope of IFRS 5 The scope of IFRS 5 is a little complicated.

A non-current asset that is scoped out of IFRS 5 for measurement purposes may fall within the classification and presentation rules.

Such a non-current asset might be part of a disposal group. In this case the measurement rules of IFRS 5 apply to the disposal group as a whole but not to the scoped out assets within the group which are measured individually according to the rules set out in their own standards.

Abandonment of non-current assets Non-current assets (or disposal groups) to be abandoned include non-current assets (or disposal groups) that are to be:

 used to the end of their economic life; or  closed rather than sold. A non-current asset (or disposal group) that is to be abandoned must not be classified as held for sale.

 

[Yakub02]

Any gain or loss on the remeasurement of a non-current asset (or disposal group) classified as held for sale that does not meet the definition of a discontinued operation is included in profit or loss from continuing operations. The gain or loss recognised on measuring or remeasuring a non-current asset (or disposal group) classified as held for sale is disclosed. If it is not presented separately on the face of the statement of profit or loss, the caption that includes that gain or loss must also be disclosed. Other disclosures The following information must be disclosed in the notes in the period in which a non-current asset (or disposal group) has been either classified as held for sale or sold:  a description of the non-current asset (or disposal group);  a description of the facts and circumstances of the sale, or leading to the expected disposal, and the expected manner and timing of that disposal;