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1) Before classifying NCA or disposal group as HFS, co should perform impairment testing a/c to IAS 36 i.e NCA or disposal group should be measured at lower of Carrying Value and recoverable amount
2) After classification as HFS, co should perform impairment testing a/c to IFRS 5 i.e NCA or disposal group should be measured at lower of Carrying value and FV-CTS
3) If NCA is measured using a revaluation model then it should be revalued to fair value before being classified as held for sale. It is then measured again at lower of Carrying value and FV-CTS
4) NCA will be presented as a current asset
5) No further depreciation will be charged
Sir are the above 5 steps correct and are they also in the correct order?
1. Remeasure asset at date it becomes HFS. This means depreciate it and revalue it if there is a policy of revaluation.
2. Now write down to FVCTS if less than CA.
3. Move to current assets.
4. Do not depreciate further.
So sir the steps which I have written, should I write the below number 1 step or not?
1) Before classifying NCA or disposal group as HFS, co should perform impairment testing a/c to IAS 36 i.e NCA or disposal group should be measured at lower of Carrying Value and recoverable amount
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