Non-current asset held for sale
A non-current asset or disposal group is classified as held for sale when its carrying amount will be recovered principally through sale rather than continuing use and the relevant IFRS 5 conditions are met, including availability for immediate sale and a highly probable sale. Measurement rules and exceptions apply.
Worked example
Management commits to sell a machine that is available for immediate sale and actively marketed; the auditor assesses the classification criteria.
Common mistake
A management intention to sell at an unspecified future date is not sufficient on its own.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |