Page 203 - F1 Integrated Workbook STUDENT 2018

IFRS 5 Non-current assets held for sale and discontinued
operations

Non-current asset held for sale

The objective of IFRS 5 Non-current Assets Held for Sale and Discontinued
Operations is to establish principles for reporting information about discontinued
operations and non-current assets held for sale. IFRS 5 Non-current Assets Held for
Sale and Discontinued Operations states 'any non-current assets held for sale
should be presented separately on the statement of financial position and any
results from discontinued operations presented separately on the statement of
profit or loss' (IFRS 5, para 38) . This is to ensure the users are able to better
assess the future performance and cash flows of the entity.

1.1 Classification

In accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued
Operations these assets will be treated as held for sale if all of the following criteria
are met (IFRS 5, para 6-8):

 available for immediate sale in its present condition

 the sale is highly probable

 a reasonable price has been set

 the sale is expected to complete within one year from the date of classification.

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