International Financial Reporting Standards_guide.pdf

CHAPTER 19
Noncurrent Assets Held for Sale
and Discontinued Operations
(IFRS 5)
19.1 OBJECTIVE
The objective of IFRS 5 is to specify how noncurrent assets and disposal groups that are held
for sale should be measured and presented in financial statements. It further specifies how a
discontinued operation should be presented and disclosed in financial statements.
19.2 SCOPE OF THE STANDARD
IFRS 5 presentation requirements apply to:
■ all noncurrent assets and disposal groups (including the associated liabilities) held for
sale; and
■ discontinued operations.
Assets classified as noncurrent in accordance with IAS 1 should not be reclassified as current
assets until they meet the criteria to be classified as held for sale.
Assets of a class that an entity would normally regard as noncurrent that are acquired exclusively
with a view to resale should not be classified as current unless they meet the criteria
to be classified as held for sale.
The measurement provisions of this IFRS do not apply to the following assets, either individually
or as part of a disposal group, and the measurement provisions in the respective
standard should be applied:
■ deferred tax assets (IAS 12);
■ assets arising from employee benefits (IAS 19);
■ financial assets within the scope of IAS 39;
■ noncurrent assets that are accounted for in accordance with the fair value model in
IAS 40;
■ noncurrent assets that are measured at fair value less estimated point-of-sale costs
(IAS 41); and
■ contractual rights under insurance contracts as defined in IFRS 4.
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