[quangtuan]

Working capital= Receivables + Cash + Inventory – Payables

Inventory increasing means cash decreases or payables increases, that’s why Working Capital does not change.

[quangtuan]

71 marks

[quangtuan]

Now I understand. Thank you, Sir!

[quangtuan]

Dear em,

Conditions from IFRS 5

In general, the following conditions must be met for an asset (or ‘disposal group’) to be classified as held for sale: [IFRS 5.6-8]

– management is committed to a plan to sell
– the asset is available for immediate sale
– an active programme to locate a buyer is initiated

– the sale is highly probable, within 12 months of classification as held for sale (subject to limited exceptions)
==> the plant will be retired from use on 31 March 2017.So there are 2 years if we classify this asset as held for sale on 31/12/2015
==> Not meet the requirement that it should be liquidate with 12 months?

– the asset is being actively marketed for sale at a sales price reasonable in relation to its fair value
– actions required to complete the plan indicate that it is unlikely that plan will be significantly changed or withdrawn

[quangtuan]

Thanks alot for your advice!

[Author]

Posts