There must be a single amount on the face of the statement of comprehensive income (or income statement) for the total of: This analysis may be contained in the notes or on the face of the statement of profit or loss and other comprehensive income. 2  If those assets comprise a “disposal group” the assets and the liabilities of the group must be disclosed separately either in the notes or on the face of the statement of financial position. Additionally, the entity is planning to sell part of i… Capital and reserves 65 26. The disclosure requirements were also less extensive. An impairment loss is recorded for long-lived assets held-for-sale when the carrying amount of the asset exceeds its fair value less cost to sell. Immediately before classification as held for sale, the measurement of the non-current assets (or all the assets and liabilities in a disposal group) is brought up-to-date in accordance with applicable FRSs. They are carried on balance sheet at the lower of carrying value or fair value and no depreciation is charged on them. Retained earnings. As part of the deal they also ended up buying FM104 in Dublin and Highland Radio in Donegal. Loans and borrowings 69 28. IFRS 5 outlines how to account for non-current assets held for sale (or for distribution to owners). NOTE 15. Examples 11-12 accompanying IFRS 5 illustrate presentation of assets and disposal groups held for sale. the revenue, expenses and pre-tax profit for the period from the discontinued operations, the related tax charge (under IAS 12 – Income Taxes). When presented in the statement of profit or loss and other comprehensive income, it shall be presented in a separate section identified as discontinued operations, which is separate from continuing operations. EC staff consolidated version as of 24 March 2010 Last EU endorsed/amended on 24.03.2010. A component of the Group is classified as a discontinued operation when the criteria to be classified as held for sale have been met or it has been disposed of and such a component represents a separate major line of business or geographical area of operations, is part of a single co-ordinated major line of business or geographical area of operations or is a subsidiary acquired exclusively with a view to resale. Held for sale assets are long -lived assets for which a company has a concrete plan to dispose of the asset by sale. The company must also disclose its impact (if any) on the financial statements. In fact, in cases where the company is in the process of sel… Is a subsidiary acquired exclusively with a view to resale. 1  Non-current assets classified as “held for sale” and the assets of a disposal group classified as “held for sale” must be disclosed separately from other assets in the statement of financial position. An entity should disclose the following information in the notes of the financial statements in which an asset or disposal group has been sold or classified as “held for sale”: Although you re-present the discontinued operations performance figures in the previous statement of comprehensive income, you don’t do that in the statement of financial position. Articles, Clarence Street, Dun Laoghaire, Co. Dublin, Ireland To find out more, see our Cookies Policy In general terms, assets (or disposal groups) held for sale are not depreciated, are measured at the lower of carrying amount and fair value less costs to sell, and are presented separately in the statement of financial position. A long-lived asset is not depreciated while it is classified as held-for-sale. Likewise, the presentation and disclosure of noncurrent assets and disposal groups held for sale - ... (for example, the discontinuance) or by announcing its main features to those affected by it. Objective. Learn how your comment data is processed. Investment property 61 23. The comparative figures for the previous financial period should be re-presented, so the disclosures relating to discontinued operations in the prior period relate to all discontinued operations up to the current period. Non-current assets held for sale: disclosure 322 5.1 Overview 322 5.2 In the statement of financial position 322 5.3 In the statement of financial position or notes thereto 323 5.4 Other note disclosure 323 Example 7: disclosure of non-current assets held for sale 323 6. 19. NON-CURRENT ASSETS HELD FOR SALE and DISCONTINUED OPERATIONS . Phone: +353 (0)1 4433 400 Save my name, email, and website in this browser for the next time I comment. There’s no need to identify the discontinued operations as a separate line item in the previous year. Non-current assets classified as held for sale must be disclosed separately from other assets in the statement of financial position. An entity has agreed in a directors’ meeting to sell a building, and has tentatively started looking for a buyer for the building. Please click this for all the relevant disclosure in one place: Sample Disclosure Of Continuing And Discontinued Operations In One Place (27 January 2011) This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary. When you stop some operation, maybe you will have some assets held for sale in there. SCOPE IFRS 5 applies to all recognised non-current assets and to all disposal groups, ... Assets held for Sale and Discontinued Operations and is applicable for annual reporting periods commencing on or after 1 January 2005. E-mail: info@charterededucation.com, IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations, EPS: Rights issues, Options and Warrants | IAS 33 Earnings per Share. Any gain or loss recognised in accordance with IAS 36 – Impairment of Assets, The segment in which the assets or disposal group belongs (if applicable) under IFRS 1 – Operating Segments. IFRS 5 Non-current Assets Held for Sale and Discontinued Operations Prospective amendments IFRS 17 Insurance Contracts (May 2017) proposes amendments to this standard with effect for annual reporting periods beginning on or after 1 January 2023. The objective of IFRS 5 is to specify the accounting for assets held for sale, and the presentation and disclosure of discontinued operations. Sample Disclosure in Financial Statements, Sample Disclosure - Non-current Assets Held For Sale and Discontinued Operations (3 December 2008) « Learnaccounting’s Weblog, Sample Disclosure – Change of Financial Year End (25 November 2008), Books Of Original Entry In Accounting Pdf | Income Tax Accountant, More On Books of Original Entry – Cash Book, Accounting Entry Disposal Subsidiary | International Tax Accountant, Sample Disclosure – Note On Disposal Of Subsidiary (1 October 2009), Accounting Declaration Cash Dividend | Rates for CPA Services for SMB, Sample Disclosure – Dividend Declaration in Directors’ Report (18 August 2009), Qualified Accounting Report | Rates for CPA Services for SMB, Sample Disclosure – Auditors’ Report With Qualified Opinion (16 December 2010), Sample Disclosure In Financial Statements, Statement by Directors and Statutory Declaration, International Financial Reporting Standards, Sample Disclosure – Change Of Principal Activities (3 August 2011), Article On Capital Statement (2 August 2011), Sample Reports And Financial Statements (5 July 2011), Sample Statement Of Changes In Equity (20 May 2011), Sample Disclosure – Revenue Recognition Policy For Sale Of Goods (6 May 2011), critical judgement in applying accounting policies, significant event subsequent to balance sheet date. Capital management 68 27. Required fields are marked *. This site uses cookies. Property, plant and equipment 53 21. Assets held for sale. The standard was published in March 2004 and is effective from 1 January 2005. The price of the building has been fixed at $4m and a surveyor has valued the building based on market prices at $3.6m. Available-for-sale (AFS) is an accounting term used to describe and classify financial assets. This part of IFRS 5 is concerned with separate disclosure of the results of operations deemed to be discontinued. Also, assets and liabilities that are part of a disposal group held for sale must be disclosed separately from other assets and liabilities in the statement of financial position. IFRS 5 Non-current Assets Held for Sale and Discontinued Operations outlines how to account for non-current assets held for sale (or for distribution to owners).. 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