Held-for-sale disposal group with a revalued asset
Immediately before classification as held for sale, measure the individual assets and liabilities under applicable standards. Then measure the disposal group at the lower of carrying amount and fair value less costs to sell, subject to IFRS 5 measurement exceptions for specified assets. Classification and subsequent disposal are distinct events; an existing revaluation surplus requires separate analysis under the applicable standard.
Worked example
A disposal group has a carrying amount of $500,000 immediately before classification and fair value less costs to sell of $460,000. Subject to the applicable allocation rules and exceptions, recognise a $40,000 impairment loss.
Common mistake
Assuming a previously revalued asset remains at its old revalued amount regardless of the held-for-sale test, or that the ultimate disposal gain is known on classification.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBR | Supporting | September 2026–June 2027 |