When an asset is classified as held for sale then at the time of such reclassification it is measured at?

When an asset is classified as held for sale then at the time of such reclassification it is measured at?

Measurement framework Non-current assets/disposal groups classified as held for sale are measured at the lower of (IFRS 5.15): carrying amount measured immediately before reclassification (IFRS 5.18) and. fair value less costs to sell.

What are the conditions for classifying an asset as held for sale?

To classify an asset as held for sale, the asset or disposal group must be available for immediate sale in its present condition and the sale must be highly probable.

What happens when an asset is held for sale?

Assets held for sale are reported at the lower of the carrying amount and fair value less costs to sell. Such assets are not depreciated.

How do we account for assets and disposal group classified as held for sale?

In general terms, assets (or disposal groups) held for sale are not depreciated, are measured at the lower of carrying amount and fair value less costs to sell, and are presented separately in the statement of financial position.

Where does assets held for sale go on the balance sheet?

Where are assets held for sale presented in the balance sheet? The assets held for sale are presented in the section of current assets. These assets are presented as a line item at the end of the current asset section.

When should an asset be recorded as non-current asset held for sale?

Such a non-current asset will be classified as held-for-sale at the date of the acquisition only if it is anticipated that it will be sold within the one-year period, and it is highly probable that the held-for-sale criteria will be met within a short period (normally three months) of the acquisition date.

What is the carrying value of an asset?

Carrying amount, also known as carrying value, is the cost of an asset less accumulated depreciation. At the initial acquisition of an asset, the carrying value of that asset is the original cost of its purchase. However, over time, the value of an asset will change.

How would the reduction in the value of the assets on classification as held for sale be treated in the financial statements?

Once the conditions mentioned above are met, the asset is classified as a held-for-sale and its carrying value is reduced if the fair value less cost to sell is lower and the difference is charged to income statement as a loss on held-for-sale assets.

When can a non-current asset be classified as held for sale?

How should the assets and liabilities of of a disposal group be classified as held for sale be shown in the statement of financial position?

The liabilities of a disposal group classified as held for sale shall be presented separately from other liabilities in the statement of financial position. Those assets and liabilities shall not be offset and presented as a single amount.

How do you account for assets held for sale?

Held for sale assets are long -lived assets for which a company has a concrete plan to dispose of the asset by sale. They are carried on balance sheet at the lower of carrying value or fair value and no depreciation is charged on them.

When an entity presents current and non-current assets as separate classifications deferred tax assets must be classified as non-current assets?

Assets acquired with a view to resale Similar restriction concerns assets of a class that an entity would normally regard as non-current that are acquired exclusively with a view to resale (IFRS 5.3,11).