IFRS 5


IFRS 5 refers to the International Financial Reporting Standards relating to Non-current assets held for sale and discontinued operations.

Non-current assets held for sale

If a non-current asset is 'held for sale', the economic benefit of that asset is obtained through the asset's sale rather than through its continuous use in the business. Such assets cease to be depreciated as they are no longer being consumed by the business. Moreover, an asset held for sale is valued at the lower of either:
Non-current assets 'held for sale' should be presented separately on the face of the statement of financial position as a current asset.
For a non-current asset to be classified as 'held for sale', all of the following 4 conditions must be satisfied:
The managements decision is also required for that sale proceeds and then the Fair value could be ascertained.

Discontinued operations

A discontinued operation is a component of an enterprise that has either been disposed of, or is classified as 'held for sale', and:
If there is any gain or loss from sale of assets it should be recognised in the statement of comprehensive income.