Part of a series on
Accounting
Historical cost Constant purchasing power Management Tax
Major types Audit Budget Cost Forensic Financial Fund Governmental Management Social Tax
Key concepts Accounting period Accrual Constant purchasing power Economic entity Fair value Going concern Historical cost Matching principle Materiality Revenue recognition Unit of account
Selected accounts Assets Cash Cost of goods sold Depreciation / Amortization (business) Equity Expenses Goodwill Liabilities Profit Revenue
Accounting standards Generally-accepted principles Generally-accepted auditing standards Convergence International Financial Reporting Standards International Standards on Auditing Management Accounting Principles
Financial statements Annual report Balance sheet Cash-flow Equity Income Management discussion Notes to the financial statements
Bookkeeping Bank reconciliation Debits and credits Double-entry system FIFO and LIFO Journal Ledger / General ledger Trial balance
Auditing Financial Internal Firms Report Sarbanes–Oxley Act
People and organizations Accountants Accounting organizations Luca Pacioli
Development History Research Positive accounting Sarbanes–Oxley Act
Misconduct Creative Earnings management Error account Hollywood Off-balance-sheet Two sets of books
v t e

IFRS 5 refers to the International Financial Reporting Standards relating to Non-current assets held for sale and discontinued operations.

Non-current assets held for sale

If a non-current asset is 'held for sale', the economic benefit of that asset is obtained through the asset's sale rather than through its continuous use in the business (future economic benefit). Such assets cease to be depreciated as they are no longer being consumed by the business. Moreover, an asset held for sale is valued at the lower of either:

• the asset's carrying cost; or
• the asset's fair value less the cost of selling this asset.

Non-current assets 'held for sale' should be presented separately on the face of the statement of financial position as a current asset.

For a non-current asset (Fixed Asset) to be classified as 'held for sale', all of the following 4 conditions must be satisfied:

• The asset must be available for immediate sale in its present condition and location; and
• The asset's sale is expected to be completed within 12 months of classification as 'held for sale'; and
• There must be no expectation that the plan for selling the asset will be withdrawn or changed significantly; and
• The successful sale of the asset must be highly probable, signified by both:

- The management's commitment to the asset-selling plan; and

- Existence of active marketing to support the sale of the asset.

The management's decision is also required for that sale proceeds and then the Fair value could be ascertained.^{[citation needed]}

Discontinued operations

A discontinued operation is a component of an enterprise that has either been disposed of, or is classified as 'held for sale', and:

• represents a separate major line of business or geographical area of operations; and
• is part of a single, co-ordinated plan to dispose of this separate major line of business or geographical area of operations; or
• is a subsidiary acquired exclusively with a view to resale.

If there is any gain or loss from sale of assets it should be recognised in the statement of comprehensive income.