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NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
Non-current assets to be abandoned
• An entity shall not classify as held for sale a non-current asset (or
disposal group) that is to be abandoned. This is because its carrying
amount will be recovered principally through continuing use.
• This difference in treatment arises since the carrying amount of the
abandoned asset (or disposal group) will be recovered principally
through continuing use, while that of an asset (or disposal group) held
for sale will be recovered through sale.
• Consequently, an entity shall not classify as held for sale a non-current
asset (or disposal group) that is to be abandoned.
• Non-current assets (or disposal groups) to be abandoned include non-
current assets (or disposal groups) that are to be used to the end of
their economic life as well as non-current assets (or disposal groups)
that are to be closed down rather than sold. (IFRS 5.13)
• An entity shall not account for a non-current asset that has been
temporarily taken out of use as if it had been abandoned. (IFRS 5.14)
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