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When to stop depreciating the fixed asset held for sale under IFRS 5?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › When to stop depreciating the fixed asset held for sale under IFRS 5?

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by Stephen Widberg.
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  • December 4, 2022 at 8:48 am #673290
    amin1991
    Participant
    • Topics: 5
    • Replies: 0
    • ☆

    For example, financial year starts 01-Jan and ends on 31-Dec.
    Company decides to sale the fixed asset on 01-Aug and held for sale.

    Q1 – Shall company charge depreciation from 01-Jan to 31-Jul?
    Q2 – Shall company assess the lower of carrying amount VS fair value less cost to sell on 01-Aug or 31-Dec?
    Q2.1 – If the company assesses the lower of carrying amount VS fair value less cost to sell on 01-Aug then I believe it should reassess on 31-Dec and charge difference (only causing impairment but not the impairment reversal) in profit or loss… is it correct?

    December 5, 2022 at 6:50 am #673425
    Stephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3444
    • ☆☆☆☆☆

    Q1 Yes
    Q2 Both dates.
    Q3 No. The impairment might be reversed, but you cannot go above the carrying amount at 31 July.

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