International Financial Reporting Standards_guide.pdf

Chapter 19 Noncurrent Assets Held for Sale and Discontinued Operations (IFRS 5) 225
19.4.6 A noncurrent asset that is to be abandoned should not be classified as held for sale
as the carrying amount will not be recovered through sale. The abandonment is however
likely to be an indication of impairment and the measurement and disclosure requirements
of IAS 36 should be considered.
Initial Measurement
19.4.7 Noncurrent assets held for sale
■ should be measured at the lower of carrying amount or fair value less cost to sell; and
■ should not be depreciated from the date of classification.
Subsequent Measurement
19.4.8 An entity should recognize an impairment loss for any initial or subsequent writedown
of the noncurrent asset held for sale (or disposal group) to fair value less costs to sell.
19.4.9 An entity should recognize a gain for any subsequent increase in fair value less costs
to sell of an asset, but not in excess of the cumulative impairment loss that has been previously
recognized.
19.4.10 When a sale is expected to occur beyond one year (see 19.4.3), the entity should
measure the costs to sell at their present value. Any increase in the present value of the costs
to sell that arises from the passage of time should be presented in profit or loss as a financing
cost.
Derecognition
19.4.11 An entity should cease to classify an asset (or disposal group) as held for sale when
it no longer meets the criteria in 19.4.2 or when the sale has taken place.
19.5 PRESENTATION AND DISCLOSURE
Presenting Discontinued Operations
19.5.1 The Statement of Comprehensive Income and notes should disclose (after the net
profit for the period):
■ the amounts and analyses of revenue, expenses, and pretax profit or loss attributable to
the discontinued operation; and
■ the amount of any gain or loss that is recognized on the disposal of assets or settlement
of liabilities attributable to the discontinued operation and the related income tax
expense.
19.5.2 The cash flow statement should disclose the net cash flows attributable to the
oper ating, investing, and financing activities of the discontinued operation.
Presentation of a Noncurrent Asset or Disposal Group Classified as Held for Sale
19.5.3 An entity should present and disclose information that enables users of the financial
statements to evaluate the financial effects of discontinued operations and disposals of noncurrent
assets (or disposal groups).
19.5.4 Noncurrent assets held for sale and assets and liabilities (held for sale) of a disposal
group should be presented separately from other assets and liabilities in the Statement of
Financial Position in the year of classification.