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IFRS 5 Non-current Assets Held for Sales and Discontinued Operations -…
IFRS 5 Non-current Assets Held for Sales and Discontinued Operations
1. Held for Sale
Criteria
Sale must be highly probable
Management are committed to sell
Actively locating a buyer
Unlikely to withdraw the plan
Sales expected within 1 year
Price is reasonable to its active market
Available for immediate sales in its present condition
Measurement
Write down to FV less Cost to Sell
Impairment to be expensed off in SOPL
Measure in accordance with applicable IFRS
No depreciation or amortisation
To be reclassified as Current Asset
Definition
Its carrying amount will be recovered principally through a sale transaction
Disclosure
Description of facts and circumstances of sale
Description of asset
2. Subsidiary Held for Sale
Measurement
Classify as held for sale
Criteria
Retention of NCI
Loss of control
Presentation
As discontinued operation when meets criteria
3. Non-current Assets to be Abandoned
Criteria
Closed rather than sold
Use to the end of useful life
Definition
Its carrying amount will be recovered principally through continuing use
Presentation
As discontinued operations at the date it ceases to be used if meets criteria
Not classified as held for sale
4. Discontinued Operations
Presentation
Profit or loss on remeasurement to fair value less cost to sell
Single line amount for total post-tax profit or loss
Criteria
Is part of a plan to dispose of a separate major line of business/geographical area
Is a subsidiary acquired with a view to resale
Represents a separate major line of business/geographical area of operations
Definition
A component of an entity (which has operations and cash flows) which has been disposed of or is classified as held for sale
Disclosure
Gain or loss on remeasurement
Net cash flows
Revenue, expenses, pre-tax profit or loss and income tax expenses