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Hello
This question asked about what is meant by IFRS 5.
An excerpt from the answer mentioned:
However, present conditions do not include any conditions that have been imposed by the seller of the asset or disposal group, such as if planning permission is required before sale. In this case, the asset is not held for sale.I don not understand exactly what is meant by the first sentence which starts with “however”. Also can you please give an example of what planning permission is?
Regards
Hi,
In order to be classified as held for sale it must be in a condition to sell. If planning permission is required then it cannot be sold. Planning permission is where a government or local authority allows a proposal (usually related to the construction or extension of a property) to be carried out.
Thanks
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