Can someone tell me why recognised $33m, instead of $30m of the anticipated proceed(fv less cost to sell)? Not choose the lower?
Thank.
ACCA Forums
SBRDec12 question 1, NCA held for sale
The net assets (after impairment) were $33m & the liabilities were $3 million. Collectively, that makes the $30m ($33m - $3m), but to simply show the $30m alone would be netting off, which is expressly forbidden by IFRS 5 (and IAS 1 in most cases). So the net assets and liabilities have to been shown as a single line each. Therefore, $33m is shown in current assets for the disposal group, and $3m for the disposal group shown in current liabilities.
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