IFRS 5

IFRS 5 requires:

  • a non-current asset or disposal group to be classified as held for sale if its carrying amount will be recovered principally through a sale transaction instead of through continuing use;
  • assets held for sale to be measured at the lower of the carrying amount and fair value less costs to sell;
  • depreciation of an asset to cease when it is held for sale;
  • separate presentation in the statement of financial position of an asset classified as held for sale and of the assets and liabilities included within a disposal group classified as held for sale; and
  • separate presentation in the statement of comprehensive income of the results of discontinued operations.

What are the objectives of IFRS 5?


The objective of IFRS 5 is to specify the accounting for assets held for sale and the presentation and disclosure of discontinued operations.

How an asset classified as held for sale is accounted for as per IFRS 5?


In general terms, assets (or disposal groups) held for sale are not depreciated, are measured at the lower of carrying amount and fair value less: costs to sell and are presented separately in the statement of financial position.

What are the requirements for classifying assets as held for sale?


To classify an asset as held for sale, the asset or disposal group must be available for immediate sale in its present condition and the sale must be highly probable.

What is a major line of business IFRS 5?

The entity considered that only Countries A and C’s subsidiaries qualify as “major lines of business” according to paragraph 32 of IFRS 5 and disclosed separately the result from these subsidiaries. An entity disposed of one subsidiary that had been previously disclosed as a separate operating segment.