Non Current Asset held for sale

I. Recognition
I. It shall be classified as held for sale if the carrying amount will be recovered
principally through a sale transaction.
o Available for immediate sale in its present condition
o Subject to terms that are usual and customary
o Sale must be highly probable
 Management must be committed to plan to sell the
asset
 Active program to locate buyer and complete the plan
must have been initiated
 Must be actively marketed for sale at a price that is
reasonable relative to the fair value
 Sale must be completed within one year from the date
of classification
 It can be more than one year if the delay
is caused by events or circumstances
that is beyond the entity's control and
the entity is still committed to its plan to
sell the asset
 It is unlikely that significant changes will happen to
the plan
 Probability of shareholder's approval must be
considered
 
I. Initial Measurement
It must be measured at lower of its carrying amount and fair value less costs to sell.
 
Recognize an impairment loss if the fair value less costs to sell is lower than the carrying
amount.
 
I. Subsequent measurement
1. Depreciation - no deprecation must be recognized
2. Interest and other expenses related to the liabilities - continue to recognize
3. Impairment loss - recognize if carrying amount is higher than the fair value less
costs to sell
4. Reversal of impairment loss - can be made only up to the cumulative balance of
impairment loss
 
1. Eventual sale
Recognize a gain or loss amounting to the difference between the net disposal proceeds and
carrying amount.
 
I. Change in plans of sale
It shall be measured at lower of:
o Would be carrying amount
o Recoverable amount