Page 152 - SBR Integrated Workbook STUDENT S18-J19
P. 152
Chapter 11
Example 1
Events after the reporting period
On 1 October 20X5, the directors of Ivy made the decision to sell a factory
building that was surplus to requirements. The directors expect a quick sale
because the building is in excellent condition and has good links to
transportation networks. The building was deemed to have a fair value of $3
million and was first marketed for sale at this price on 5 November 20X5.
The factory has been classified as held for sale in the financial statements for
the year ended 31 October 20X5.
Discuss the correct accounting treatment of the above in the financial
statements for the year ended 31 October 20X5.
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