Please enable JavaScript.
Coggle requires JavaScript to display documents.
Ind-AS 105: Non Current Assets Held for Sale and Discontinued Operations…
Ind-AS 105: Non Current Assets Held for Sale and Discontinued Operations
NCA Held for Sale
NCA should be available for
immediate sale
in
present condition
.
Not distant future!
No renovations/replacements
Disposal of assets must be
highly probable
.
Entity must be committed to plan for sale of asset
Entity must initiate process to trace a buyer
Entity must estimate a reasonable price
Entity must estimate disposal within 1 year
Entity must ensure that there is an active market for sale of asset
Significant changes to or withdrawal from the plan to sell asset is unlikely.
When to Apply?
Any time, subject to fulfillment of conditions
Initial Recognition
NCA valued at
Carrying amt. on date of such classification
Fair value less cost to sell
Whichever is
lower
Any loss written off in SOPL
Cease depreciation/amortisation
Annual impairment test
Reversal of I.loss cannot exceed written off loss
Disposal of Group of Assets
Initial Recognition
Carrying amt. for all assets in group
Fair Value less Cost to Sell
for all assets in group
Whichever is
lower
Allocation of Loss
Adjust entire loss against G/W first (if any)
Allocate remaining loss between NCA in the ratio of their carrying amts.
Annual impairment test for group of assets
Reversal of I.loss not allowed for G/W
Presentation
Separate heading after Current Assets
Separate heading after Current Liabilites
Disclosure of major assets and liabilities not reqd. for
newly acquired subsidiary that meets criteria for held for sale on acquisition
Change in Plan
NCA valued at .
Original carrying amt. had there not been application of 105
Recoverable Amt.
Whichever is
lower
Carrying amt. as per 105 - Carrying amt. recalculated above = Transfer to SOPL
Other Key Points
Abandoned assets will not qualify as held for sale
Criteria of held for sale is met after reporting period but before authorisation of FS - Not classify as held for sale
Asset acquired exclusively for subsequent disposal -
Classify as held for sale on acquisition date
Sale includes exchange also
Exception to period of 1 year -
If delay is caused by events beyond control of entity +
Sufficient evidence that entity is committed to plan
Sale plan involving loss of control in subsidiary -
Classify all its assets and liabilities as held for sale
Disclosure
Description of NCA held for sale
If change of plan has taken place +
Description of facts and circumstances
Loss at the time of initial recognition
Out of Scope
Deferred Tax Assets
Ind-AS 12
Employees Benefit Assets
Ind-AS 19
Financial Instruments
Ind-AS 109
Agricultural Items
Ind-AS 41
Insurance Assets
Ind-AS 104
Discontinued Operations
Discontinuation of business/geographical segment
with plan for disposal of all related assets and liabilities
Presentation
B/S - Same as NCA Held for Sale
SOPL - Incomes, Exp. and Taxes related to such operations should be shown separately
AND