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Ask the Tutor ACCA FR

IFRS 5

RRustam1h ago

Which of the following items should be classed as an asset held for sale under IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations?

A. Relicoz Co plans to demolish its head office and, subsequently, sell the underlying land; the sale of which is highly likely within four months of demolition

B. A brand purchased by Relicoz Co several years ago to sell a single product, which is not currently being produced or sold due to new legislation making the product illegal

C. An item of plant is currently being marketed at a price of $960,000 and only bids up to $640,000 have been received

D. An empty, unused warehouse is being marketed, and several potential buyers have offered the asking price, with a sale expected within 30 days

adamadamTutor24m ago#1

D. The unused warehouse meets the IFRS 5 criteria for being held for sale because it is available for immediate sale, actively marketed at a reasonable price, and the sale is highly probable within a short timeframe.

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