 |
International Financial
Reporting Standards (IFRS) |
|
| U.S. GAAP | IFRS, IAS | Accounting Topics |
International Financial Reporting Standard (IFRS) 5
Non-current Assets Held for Sale and Discontinued Operations
International Financial
Reporting Standards (IFRS) |
|
International Accounting
Standards (IAS) |
|
U.S. GAAP by Topic |
| International Financial Reporting Standard (IFRS) 5 |
|
IFRS 5
Non-current Assets Held for Sale and Discontinued
Operations
Issued in March 2004: replaced IAS 35
Recent amendment: by IFRS 3 revised in January 2008 |
|
What is a disposal group of assets? --> a group of assets (1) to be disposed of (2) together as a group (3) in a single transaction |
|
Non-current assets (or disposal groups) --> are classified as held for sale if --> carrying amount is expected to be recovered (1) principally through a sale transaction (2) not through continuing use |
|
Non-current assets (or disposal groups) classified as
held for sale --> reported separately (from other assets) in the statement of financial position |
|
Measurement Non-current assets (or disposal groups) held for sale are measured --> at the lower of (1) and (2): (1) carrying amount (2) fair value less costs to sell |
|
What is a discontinued operation? --> A component of an entity that (1) has been disposed of or (2) is classified as held for sale --> and satisfies one of the following conditions: (3) represents a separate major line of business or geographical area of operations (4) is part of a single plan to dispose of a separate major line of business or geographical area of operations (5) is a subsidiary acquired exclusively for the purpose of resale |
|
Disclosure requirement in the statement of comprehensive income --> the sum of (1) and (2) is reported as a single amount in the statement of comprehensive income (1) the profit or loss (post-tax basis) of discontinued operations (2) the gain or loss (post-tax basis) recognised on (2a) or (2b): (2a) the measurement to fair value less costs to sell (2b) the disposal of the assets (or disposal groups) of discontinued operation |
|
Disclosure requirements either in the notes or in the statement of comprehensive income --> an analysis of the sum of (1) and (2), from the previous disclosure requirement (3) revenue, expenses and pre-tax profit or loss of discontinued operations (4) income tax expense related with (3) (5) gain or loss recognised on (5a) or (5b): (5a) the measurement to fair value less costs to sell (5b) the disposal of the assets (or disposal groups) of discontinued operation (6) income tax expense related with (5) --> net cash flows of discontinued operations (attributable to the operating, investing and financing activities) --> the amount of income from continuing operations and the amount of income from discontinued operations (attributable to the owners of the parent) |
