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IFRS 5

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 5

Viewing 4 posts - 1 through 4 (of 4 total)
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  • November 27, 2017 at 5:07 pm #418461
    Alex
    Member
    • Topics: 10
    • Replies: 7
    • ☆

    Dear Sir, when there is a discontinued operation recognized (NOT held for sale) then we report this division separately, and we depreciate all assets as before, right?

    Thank you

    November 28, 2017 at 10:10 pm #418754
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    Hi,

    We would likely have performed an impairment review when the operation was discontinued so the assets would be at their recoverable amount. Any depreciation following would be minimal. There is no requirement to stop depreciating.

    Thanks

    November 29, 2017 at 10:41 pm #419007
    Alex
    Member
    • Topics: 10
    • Replies: 7
    • ☆

    Thank you.

    1) So if we discontinued cash generating unit, we still can depreciate the assets despite the fact that we don’t use them?

    2) Another question, should we report assets held for distribution to shareholders separately from assets held for sale and discontinued operations in a balance sheet?

    November 30, 2017 at 9:24 pm #419259
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    Hi,

    You can depreciate it if you wish but as I said it would be minimal as the recoverable amount would be low or the remaining useful life will be low too.

    I’m not too sure that you meant with regards ‘assets held for distribution to shareholders’.

    Thanks

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