The sale … FRS 102 does not have a ‘held for sale’ classification for non-current assets or groups of assets and liabilities. The classification also applies to disposal groups, which are a group of assets and possibly some liabilities which an entity intends to dispose of in a single transaction. A non-current asset (or disposal group) that is held for sale must be up for sale in its present condition and the sale … Reclassification of a non-current asset - held for sale. If the asset continues to be held for sale but at a price in excess of its fair value, then in the absence of a price reduction the asset is not available for immediate sale. Classification of non-current assets (or disposal groups) as held for sale or as held for distribution to owners. Therefore, IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations was issued to highlight the The objective of IFRS 5 is to specify how assets that are classified as ‘held for sale’ should be presented and disclosed within a set of financial statements, and discontinued operations. Current asset b. Other noncurrent asset c. Noncurrent investment d. Property, plant and equipment: a: In order for a noncurrent asset to be classified as held for sale, the sale must be highly probable. An entity classifies a non-current asset as held-for-sale if its carrying amount will be recovered mainly through selling the asset rather than through usage. When a company makes the decision to sell an asset or to stop some part of its business, it is making a decision that affects the future cash flows, profitability and overall financial situation. The users of the financial statements should be informed about these events. 4 eg. BACKGROUND . 1. Noncurrent asset classified as held for sale shall be presented in the statement of financial position as a. Asset (or disposal group) that are available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups); and. IN1 Hong Kong Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations (HKFRS 5) sets out requirements for the classification, measurement and presentation of non-current assets held for sale and replaces SSAP 33 Discontinuing Operations. Available-for-sale (AFS) is an accounting term used to describe and classify financial assets. In the statement of financial position (IFRS5.38): you shall present a non-current asset or assets of a disposal group classified as held for sale separately from other assets. 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