Ind AS 105: Non-current Assets Held for Sale#
Classification Criteria#
A non-current asset is classified as held for sale if:
- Carrying amount will be recovered through sale
- Asset is available for immediate sale
- Sale is highly probable (within 12 months)
- Active program to find buyer initiated
- Price is reasonable compared to fair value
- Actions to complete sale indicate unlikely changes
Not classified as held for sale:#
- Inventory
- Assets held for disposal in business combination
- Assets to be abandoned
Measurement#
At classification date:#
- Measure at lower of:
- Carrying amount
- Fair value less costs to sell
After classification:#
- No depreciation or amortization
- Test for impairment
- Measure at each reporting date
Increase in fair value:#
- Previously recognized loss reversed
- Maximum reversal limited to previously recognized loss
Presentation#
In Balance Sheet:#
- Presented separately from other assets
- Liabilities directly associated shown separately
- No netting of assets and liabilities
Discontinued Operations:#
- If disposal represents strategic shift
- Significant part of operations
- Qualifies as discontinued operation
Disclosure Requirements#
- Major classes of assets and liabilities
- Description of the asset
- Expected timing of disposal
- Gain or loss on remeasurement
- Revenue and expenses from discontinued operations