IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
Held-for-sale classification requires immediate availability for sale in present condition and a highly probable sale, subject to the standard’s detailed requirements. Assets and disposal groups within the measurement requirements are generally measured at the lower of carrying amount and fair value less costs to sell, with specified exclusions. A discontinued operation must meet additional criteria and is presented separately as required.
Worked example
An asset with carrying amount $100,000 meets all held-for-sale criteria and has fair value less costs to sell of $85,000. Assuming no measurement exception applies, recognise a $15,000 write-down.
Common mistake
Classifying an asset merely because management hopes to sell it, or treating every subsidiary disposal as a discontinued operation.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |