Topic list Syllabus reference

A non-current asset (or disposal group) that is no longer classified as held for sale (for example, because the sale has not taken place within one year) is measured at the lower of:

1. 
   Its carrying amount before it was classified as held for sale, adjusted for any depreciation that would have been charged had the asset not been held for sale
   
2. 
   Its recoverable amount at the date of the decision not to sell (IFRS 5: para. 27)
   

Exam focus point
Note that under IFRS 5, the carrying amount is compared to the fair value less costs of disposal..
However, the carrying amount of the asset is compared to the recoverable amount (which is the higher of fair value less costs of disposal and value in use), under IAS 36.

4. 
   Presentation of a non-current asset or disposal group classified as held for sale
   

Non-current assets and disposal groups classified as held for sale should be presented separately from other assets in the statement of financial position. The liabilities of a disposal group should be presented separately from other liabilities in the statement of financial position.

1. 
   Assets and liabilities held for sale should not be offset.
   
2. 
   The major classes of assets and liabilities held for sale should be separately disclosed either on the face of the statement of financial position or in the notes.
   
3. 
   IFRS 5 requires non-current assets or disposal groups held for sale to be shown as a separate
   

component of current assets/current liabilities. (IFRS 5: para. 38)
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(IFRS 5: IG Example 12)
For example (taken from standard):
ASSETS
Non-current assets

Presentation of published financial statements 1
11AS1 Presentation of Financial Statements 2
11AS 8 Accounting Policies, Changes in Accounting Estimates and Errors 302
11AS 33 Earnings per Share 322

5. 
   Additional disclosures
   

In the period in which a non-current asset (or disposal group) has been either classified as held for sale or sold the following should be disclosed.

1. 
   A description of the non-current asset (or disposal group)
   
2. 
   A description of the facts and circumstances of the disposal
   
3. 
   Any gain or loss recognised when the item was classified as held for sale
   

Where an asset previously classified as held for sale is no longer held for sale, the entity should disclose a description of the facts and circumstances leading to the decision and its effect on results.
(IFRS 5: para. 41)

6.