IFRS 5 – NCA – HFS Introduction / IFRS 5 – NCA – HFS example

I guess you are talking about the example Namibia.

As there is a policy of revaluation asset is revalued – gain to OCI

Then we compare the CA with the FVCTS which gives a loss (effectively the disposal costs) – this goes to P&L

As you feel you didn’t get the message from the video I will look at it this segment next time we re-record

Rule 1

IF THERE IS A POLICY OF REVALUATION revalue the asset – gain to OCI

Rule 2

Compare revised CA and FVCTS – loss to P&L

As stated in last post I will have a look at the video next time we re-record.

See below for detail.

Source – Deloitte – iasplus:

Impairment must be considered both at the time of classification as held for sale and subsequently:

At the time of classification as held for sale. Immediately prior to classifying an asset or disposal group as held for sale, impairment is measured and recognised in accordance with the applicable IFRSs (generally IAS 16 Property, Plant and Equipment, IAS 36 Impairment of Assets, IAS 38 Intangible Assets, and IAS 39 Financial Instruments: Recognition and Measurement/IFRS 9 Financial Instruments). Any impairment loss is recognised in profit or loss unless the asset had been measured at revalued amount under IAS 16 or IAS 38, in which case the impairment is treated as a revaluation decrease.

After classification as held for sale. Calculate any impairment loss based on the difference between the adjusted carrying amounts of the asset/disposal group and fair value less costs to sell. Any impairment loss that arises by using the measurement principles in IFRS 5 must be recognised in profit or loss [IFRS 5.20], even for assets previously carried at revalued amounts. This is supported by IFRS 5 BC.47 and BC.48, which indicate the inconsistency with IAS 36.