Page 49 - 2018 FAC4864 Test 4 slides - Borrowing Costs & IFRS 5

NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

Impairment loss for a disposal group

At initial classification and measurement as well as

subsequent remeasurement leading to an impairment loss

• The impairment loss recognised for a disposal group shall

reduce the carrying amount of the noncurrent assets that
fall within the scope of the measurement requirements of

IFRS 5 in the order of allocation set out in IAS 36.104(a), (b)
and .122 Impairment of assets. (IFRS 5.23)

• The impairment loss shall be allocated to reduce the

carrying amounts of the assets (group of assets) in the
following order:

• first against goodwill and

• the remainder against other assets in proportion to their carrying
amounts. (IAS 36.104 (a), (b) and .122).

• Current assets forming part of the disposal group will not be
reduced by the impairment loss.

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