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IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations
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IFRS 5: Non-current Assets Held for Sale and Discontinued Operations
Welcome
Terms
The smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. In other words, a component of an entity will have been a cash-generating unit or a group of cash-generating units while being held for use.
The incremental costs directly attributable to the distribution, excluding finance costs and income tax expense.
The incremental costs directly attributable to the disposal of an asset (or disposal group), excluding finance costs and income tax expense.
An entity shall classify an asset as current when: (a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle; (b) it holds the asset primarily for the purpose of trading; (c) it expects to realize the asset within twelve months after reporting period; or (d) the asset is cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after reporting period.
A component of an entity that either has been disposed of or is classified as held for sale and: (a) represents a separate major line of business or geographical area of operations; (b) is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or (c) is a subsidiary, acquired exclusively with a view to resale.
A disposal group is: (a) a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction; and (b) liabilities directly associated with those assets that will be transferred in the transaction. The disposal group includes goodwill acquired in a business combination: (a) if the disposal group is a cash-generating unit to which goodwill has been allocated, in accordance with the requirements of paragraphs 80-87 of IAS 36 Impairment of Assets; or (b) if it is an operation within such a cash-generating unit. A disposal group may be a group of cash-generating units, a single cash-generating unit, or part of a cash-generating unit.
The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
An agreement with an unrelated party, binding on both parties and usually legally enforceable, that (a) specifies all significant terms, including the price and timing of the transactions; and (b) includes a disincentive for non-performance that is sufficiently large to make performance highly probable.
Significantly more likely than probable.
An asset that does not meet the definition of a current asset.
More likely than not.
The higher of an asset’s fair value less costs to sell and its value in use.
The present value of estimated future cash flows, expected to arise from: (a) the continuing use of an asset; and (b) from its disposal at the end of its useful life.
Here are some useful links and documents:
Amy_calculations
AQ6_Indigo Ltd
AQ9_Echo_Ltd
Friendly_Traders_Ltd
Mike_email
Minutes_and_implications