Noncurrent asset – According to PFRS5, these are assets that do not meet the definition of a current

asset.

1. Asset that are considered non-current in accordance to PAS1 are going to be considered current
asset IF they meet the criteria to be considered as held for sale under PFRS5.
2. Non-current asset within the scope of PFRS5
a. Plants, properties, and equipment
b. Investment in properties under COST MODEL
c. Investment in associate, subsidiary, and joint venture
d. Intangible asset
3. Disposal group – These are assets and liabilities that are going to be disposed of as a group in
one transaction
4. A non-current asset will be considered as held for sale if there are more benefits in selling it than
continue using it.
5. Non-current assets and disposal group are considered as held for sale if both of the following
conditions are met:
a. The thing is available for immediate sale in its present condition
b. The sale is highly probable, as evidence by existence of ALL of the following:
i. Entity is committed in selling it
ii. Entity is actively location a buyer
iii. Sale price is reasonable in relation to asset’s current fair value
iv. Sale is expected to be completed within a year from the date of classification
v. It is unlikely that sale will be withdrawn
6. Sales include barter that have commercial substance
7. An asset that is not sold within a year will be reclassified to its original classification
a. Exceptions
i. When the delay of sale is caused by fortuitous events
ii. When the entity remains committed in selling the thing
8. A non-current asset acquired with a subsequent view of its disposal is classified as held for sale
upon its acquisition date if the sale within one year requirement is met, and that it is highly
probable that the other requirement will be met short after.
9. A non-current asset is not considered as held for sale during the current period if it only met the
requirement to be considered as held for sale after the reporting period. Same treatment is
applied for asset that only met the qualification for classification as discontinued operation
after the current period.
10. Non-current assets declared as property dividend is classified as held for distribution if it is
available immediate distribution and that the distribution is highly probable.
11. Non-current asset that are going to be abandoned are NOT considered as held for sale.
Abandoned means that we will exhaust all of its use.
12. Held for sale and Disposal group are measured initially and subsequently at lower of carrying
amount and fair value less cost to sell.
13. Asset held for distribution are measured at lower of carrying amount and fair value less cost to
distribute.
14. Held for sale acquired as part of business combination are measured at fair value less cost to
sell.
15. Inventories are measured at lower of cost and net realizable value.
16. Held for sale and disposal group are not depreciated and amortized while they are considered as
held for sale. However, interest and other expenses attributed to the instrument in a disposal
group are continued to be recognized.
17. Gains on reversal of impairment is recognized only to the extent of cumulative impairment loss
that have been recognized.
18. Impairment loss is allocated to:
a. Goodwill
b. Non-current asset under the scope of PFRS5 (pro rata)
19. Assets that ceases to be classified as held for sale is measured at LOWER of asset’s
a. Carrying amount before classification as held for sale, adjusted for any depreciation,
amortization, or revaluation that would have been recognized if it was not classified as
held for sale.
b. Recoverable amount – it is the higher of value in use and fair value less cost of disposal
20. Discontinued operation are accounted retrospectively, while held for sale are accounted
prospectively.
21.