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Hi, Kim,
I was revising the question on completion and I came across in the answers an exception made to the condition when the sale is highly probable within 12 months. what could this exception be? I did come across this sometime back in SBR but I’m still tracing where I wrote it.Happy new year to the entire opentuition team. This is my first post in 2023.
A Happy New Year to You too!
Appendix B to the standard details the limited exceptions to the one year requirement – I don’t think you need to know them for AAA.
An exception to the one-year requirement in paragraph 8 shall therefore apply in the following situations in which such events or circumstances arise:
(a) at the date an entity commits itself to a plan to sell a non-current asset (or disposal group) it reasonably expects that others (not a buyer) will impose conditions on the transfer of the asset (or disposal group) that will extend the period required to complete the sale, and:
(i) actions necessary to respond to those conditions cannot be initiated until after a firm purchase commitment is obtained, and
(ii) a firm purchase commitment is highly probable within one year.
(b) an entity obtains a firm purchase commitment and, as a result, a buyer or others unexpectedly impose conditions on the transfer of a non-current asset (or disposal group) previously classified as held for sale that will extend the period required to complete the sale, and:
(i) timely actions necessary to respond to the conditions have been taken, and
(ii) a favourable resolution of the delaying factors is expected.
(c) during the initial one-year period, circumstances arise that were previously considered unlikely and, as a result, a non-current asset (or disposal group) previously classified as held for sale is not sold by the end of that period, and:
(i) during the initial one-year period the entity took action necessary to respond to the change in circumstances,
(ii) the non-current asset (or disposal group) is being actively marketed at a price that is reasonable, given the change in circumstances, and
(iii) the criteria in paragraphs 7 and 8 are met.where can I get this full excerpt on standards details like the one you quoted here?
I would need it for knowledge.For verbatim extracts you need to be luck on a google search (as I was in this case) – that won’t necessarily get you the lastest version, but it will generally be good enough for knowledge.
Otherwise you have to buy a book/take out a subscription https://shop.ifrs.org/store
As a student, you should get as much additional reading as you need out of Deloitte’s IASplus https://www.iasplus.com/en-gb/standards/ifrs-en-gb
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