IFRS 5 (International Financial Reporting Standard 5)

Non-Current Assets Held for Sale and Discontinued Operations

Impairment Losses And Reversals

Recognition

An impairment loss is recognized in the profit and loss account for any initial and subsequent write-down of the asset or disposal group to fair value less costs to sell.

Subsequent Increase in Fair Value

A gain for any subsequent increase in fair value less costs to sell of an asset can be recognized in the profit or loss account to the extent that it is not in excess of the cumulative impairment loss that has been recognized in accordance with IFRS 5 or previously in accordance with IAS 36.

Statement of Financial Position (Balance Sheet) Presentation

Assets classified as held for sale, and assets and liabilities included within a disposal group classified as held for sale, must be presented separately on the face of the Statement of Financial Position (Balance Sheet).

Assets that cease to be classified as held for sale

Measurement

A non-current asset that ceases to be classified as held for sale is measured at the lower of:

        a)    Carrying amount before the asset was classified as held for sale

Less/Add: depreciation, amortization or revaluation that would have been recognized had the asset not been classified as held for sale.

b)   Its recoverable amount at the date of the subsequent decision not to sell.

Consolidation of all Subsidiaries

The consolidated accounts must include all of a parent’s domestic and foreign subsidiaries. There is no longer an exemption from consolidation for subsidiaries that were acquired with a view to their disposal within 12 months.

Disclosure

The following information shall be disclosed in the notes to the financial statements of the period in which a non-current asset is classified as ‘held for sale’:

·           A description of the non-current asset (or disposal group);

·           A description of the facts and circumstances of the sale, or leading to the  expected disposal, and the expected manner and timing of that disposal;

·         The gain or loss recognized;

·         If the gain or loss has not been presented separately on the face of the income statement, the caption in the income statement that includes that gain or loss;

·         The segment in which the non-current asset (or disposal group) is presented in accordance with IAS-14 Segment Reporting (if applicable);

·         The decision to change the plan to sell the non-current asset (or disposal group);

·         A description or the facts and circumstances that led to the change of the decision to sell;

·         The effect of the change of the decision to sell the non-current (or disposal group) on the results of operations for the period and any prior periods presented.