Page 71 - Microsoft Word - 00 P1 IW Prelims.docx

Non-current assets, agriculture and inventories

Assets held for sale

7.1 Definition

An asset held for sale is one where the carrying amount will be
recovered primarily from a sales transaction.

7.2 Summary of recognition and measurement

ASSETS HELD
FOR SALE
Sale expected
Marketed at
fair value within 12
months
Must be available for
sale in present
condition and sale must
Active be highly probable Management
programme to committed to
find buyer plan

Measure at lower of:

- Carrying amount
Present below - Fair value less costs to sell If fair value
current assets model used,
revalue asset
before
classification
Stop
depreciation

Further detail can be found in Section 7 of Chapter 5 in your Study Text.

65