IFRS-5 Non-current Assets Held for Sale and Discontinued Operations by Sumon Sheikh

IFRS-5 Non-current Assets Held for Sale and Discontinued Operations by Sumon Sheikh

1. IFRS-5 This Photo by Unknown Author is licensed under CC BY Sumon Sheikh BBA, MBA Dept. of Accounting and Information Systems Jatiya Kabi Kazi Nazrul Islam University Trishal, Mymensingh-2224, Bangladesh

2. 2 Contents Background Definition Objectives Classification Disclosures Presentation Measurement Implication

3. 3 Issued in Mar 2004 and applicable on or after 1 Jan 2005. IAS 35 Withdrawals: This IFRS supersedes the IAS 35 Discontinued Operations Background

4. Objectives 1. To specify the accounting for Assets held for sale 2. To set the presentation and disclosure of 4

5. Definitions 5 Current asset Component of an entity Non-current asset All assets except the current assets Operations and cash flows that are easily distinguishable from the rest of the company both operationally and financially.

6. Definitions 6 Costs to sell Fair value is the sum to be received for the sale of an asset or paid for the transfer of a liability at the measurement date . (See IFRS 13) Fair value (FV)

7. 7 H eld for sale Disposed of only through a sale Classification

8. 8 Classification The asset is ready for instant sale Board decided to sell a plan Active program to find the buyer is introduced Asset is advertised at a rational value Highly probable to be sold within one year Conditions must include assets to be held for sale: Assets/operations expected to be abandoned do not qualify!

9. 9 Measurement NEVER APPLY TO:

10. 10 Measurement Main Principle: Lower of This Photo by Unknown Author is licensed under CC BY This Photo by Unknown Author is licensed under CC BY-ND

11. 11 Measurement Always in P/L How? Before classification After Classification In P/L or OCI if applicable Do not charge any depreciation! as per the relevant IFRS as per the relevant IFRS

12. 12 explanation of the circumstances , facts , and the anticipated timing of the sale or disposal impairment losses and reversals to be recorded in the statement of comprehensive income Disclosures

13. 13 Practical Implication Assets held for sale

14. 14 Practical Implication

15. 15 Practical Implication

16. 16 Practical Implication Assets held for sale

17. 17 Practical Implication

18. 18 Practical Implication

19. Cash generating units 19 Components of an entity which- has been sold or is referred as being held for sale   distinct geographic location /vital business sector is it intended for sale, or was a subsidiary bought with the intention of selling it &

20. 20 Presentation Net cash flows from a discontinued operation's investing , operating , and financing activities. May be displayed in the Notes to the FS

21. 21 Presentation Disclose separately on the Statement of Financial Position:

22. Practical Implication 22

23. Practical Implication 23

24. Practical Implication 24

25. Practical Implication 25

26. Practical Implication 26

27. IAS Plus (2023), Viewed at https://www.iasplus.com/en/binary/iasplus/0404ifrs5.pdf Silvia of CPDbox , viewed at https://www.youtube.com/watch?v=4sElFe8WOkw&t=13s The Cost And Management (2018), 46(2) Sources

28. Q & A Any Questions?

29. THANK YOU! KEEP LEARNING…