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ma’am this question’s part a)iii) indirectly asks for specific costs that will be included in the “costs to sell” the figure which is needed for calculation of FV less costs to sell. So, I wanted to understand if there is any rule to identify which costs qualify as “costs to sell” and which don’t?
It is a general principle in IFRS that any allocation of costs should be “directly attributable” – so any costs associated with the consequences of the disposal (e.g. reorganisation) rather than the disposal itself are not a cost of disposal. Otherwise the asset will be overly written down – which would effectively recognise now a cost that belongs to a future period.
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