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Hi,
With respect to assets held for sale; the initial treatment would be to first charge depreciation up to date when we decide to sell or revalue it at that date, and then value at lower of carrying amount and fair value less cost to sell. This may mean an impairment/revaluation downwards is needed. This impairment/revaluation goes to Income Statement or OCI please? Also, any subsequent increases in fair value go to Income Statement or OCI please?
Thanks
Profit or Loss Account. there should not be any subsequent increases / decreases – one of the main criteria is that an AHFS shall be disposed of within 12 months. If it isn’t, and if the cause of non-sale is not due to some external circumstances beyond the company’s control, then it should be reclassified and re-measured
OK?
If the delay is caused by circumstances outside the entity’s control and the asset is kept in held-for-sale for another year and there is an increase in FV, doesn’t the gain just go to P&L?
Thanks
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