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When to stop depreciating the fixed asset held for sale under IFRS 5?

This topic has 1 reply, 2 voices, and was last updated 2 months ago by Stephen Widberg.

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December 4, 2022 at 8:48 am #673290
amin1991
Participant
- Topics: 4
- Replies: 0
For example, financial year starts 01-Jan and ends on 31-Dec.
Company decides to sale the fixed asset on 01-Aug and held for sale.
Q1 – Shall company charge depreciation from 01-Jan to 31-Jul?
Q2 – Shall company assess the lower of carrying amount VS fair value less cost to sell on 01-Aug or 31-Dec?
Q2.1 – If the company assesses the lower of carrying amount VS fair value less cost to sell on 01-Aug then I believe it should reassess on 31-Dec and charge difference (only causing impairment but not the impairment reversal) in profit or loss… is it correct?
December 5, 2022 at 6:50 am #673425
Stephen Widberg
Keymaster
- Topics: 12
- Replies: 2843
Q1 Yes
Q2 Both dates.
Q3 No. The impairment might be reversed, but you cannot go above the carrying amount at 31 July.
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