Current asset b. Classification of non-current assets (or disposal groups) as held for sale or as held for distribution to owners. When a company makes the decision to sell an asset or to stop some part of its business, it is making a decision that affects the future cash flows, profitability and overall financial situation. Asset (or disposal group) that are available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups); and. FRS 102 does not have a ‘held for sale’ classification for non-current assets or groups of assets and liabilities. Available-for-sale (AFS) is an accounting term used to describe and classify financial assets. B. Reclassification of a non-current asset - held for sale. The users of the financial statements should be informed about these events. The sale … In the statement of financial position (IFRS5.38): you shall present a non-current asset or assets of a disposal group classified as held for sale separately from other assets. 4 eg. The same applies for liabilities of a disposal group classified as held for sale. A non-current asset (or disposal group) that is held for sale must be up for sale in its present condition and the sale … The objective of IFRS 5 is to specify how assets that are classified as ‘held for sale’ should be presented and disclosed within a set of financial statements, and discontinued operations. BACKGROUND . The decision to sell an asset, or plans to discontinue the operation to which an asset belongs, are considered an impairment indicator, which triggers an impairment review. Therefore, IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations was issued to highlight the 1. How an Available-for-Sale Security Works . The External Auditors would need to be assured that non-current assets classified as held for sale are: A. Noncurrent asset classified as held for sale shall be presented in the statement of financial position as a. IN1 Hong Kong Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations (HKFRS 5) sets out requirements for the classification, measurement and presentation of non-current assets held for sale and replaces SSAP 33 Discontinuing Operations. [FRS 102 para 27.9(f)]. An NCA is an asset that does not meet the above ‘current asset’ definition. If the asset continues to be held for sale but at a price in excess of its fair value, then in the absence of a price reduction the asset is not available for immediate sale. An entity classifies a non-current asset as held-for-sale if its carrying amount will be recovered mainly through selling the asset rather than through usage. NON-CURRENT ASSETS HELD FOR SALE and DISCONTINUED OPERATIONS . 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