Page 45 - 2018 FAC4864 Test 4 slides - Borrowing Costs & IFRS 5
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NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
Other matters in respect of measurement
• Non-current assets are sometimes acquired with a view
to dispose of in the short-term.
• If a newly acquired non-current asset (or disposal
group) meets the criteria to be classified as held for
sale, applying the measurement requirements of IFRS 5
will result in the asset (or disposal group) being
measured on initial recognition at the lower of its
carrying amount had it not been classified as held for
sale (for example its cost) and its fair value less costs to
sell.
• If the asset (or disposal group) is acquired as part of a
business combination, it shall be measured at
acquisition at fair value less costs to sell. (IFRS 5.16)
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