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IF WE HAVE THE ASSET HELD FOR SALE AND IT IS UNSOLD UNTIL THE END OF THE YEAR.
HOW WE WILL TREAT THE ASSET?
Should we charge depreciation for ASSET or not?One of criteria to be classified as HFS is the sale is expected to exercise within 12 months from the date of classification. hence, maybe at the end of the year, it is unsold but still qualified for this criterion => no adjustment.
In other case, if u evaluate it is no longer satisfied as HFS, i think there is a change in accounting estimates. We should charge the depreciation since the date of reclassification. If it is material, retrospective treatment is required.
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