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Hi guy please help me better understand IFRS 5
I have an asset designated as held for sale.
Cost = $ 1m
Fair value less cost = $1m – $100K = $900KTherefore, i would measured the NCA held-for-sale at $900K
What are the journal entries from regconising to selling the asset?
Assume sale proceeds of $1.5mWhen Regconised
Dr Income Statement 100K
Cr NCA Held-for-Sale 100KWhen selling,
Dr Expense (Cost of selling NCA Held-for-Sale) 100K
Cr Creditor 100KDr Cash 1500K
Cr Sales 1500KYear-end,
Dr Sale 1500K
Cr Income Statement 1500KDr Income Statement 900K
Cr NCA Held-for-Sale 900KDr Income Statement 100K
Cr Expense (Cost of selling NCA Held-for-Sale) 100KAre these the correct journal entries?
You seem to be going round in a big circle! What’s the matter, after the initial impairment, with Dr cash, Cr Ahfs. Then take the credit balance on Ahfa account to the Statement of Income.
Pay the expenses of disposal Dr Expense Cr cash, then write costs of disposal off to Statement of Income
@mikelittle said:
You seem to be going round in a big circle! What’s the matter, after the initial impairment, with Dr cash, Cr Ahfs. Then take the credit balance on Ahfa account to the Statement of Income.Pay the expenses of disposal Dr Expense Cr cash, then write costs of disposal off to Statement of Income
i do not understand the bold line…i want to know about impairment loss i.e. first entry
Dr Impairment loss 100,000
Cr AHFS 100,000and then again we do the following entry
Dr cost of disposal 100,000
Cr Cash 100,000is this the thing you want to say? please help me on this
Regards
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