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Friday 24 October 2014

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Non-current Assets Held for Sale and Discontinued Operations: Classification in conjunction with a planned initial public offering IPO


 IFRS Interpretations Committee agenda decision

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations: Classification in conjunction with a planned initial public offering (IPO) but where the prospectus has not been approved by a securities regulator

The Interpretations Committee received a request to clarify the application of the guidance in IFRS 5 with regard to the classification of a disposal group as held for sale, in the case of a disposal plan that is intended to be achieved by means of an IPO, but where the prospectus (ie the legal document with an initial offer) has not yet been approved by the securities regulator.

The submitter requested the Interpretations Committee to clarify whether the disposal group would qualify as held for sale before the prospectus is approved by the securities regulator, assuming that all of the other criteria in IFRS 5 have been fulfilled.

Project stages

Deliberations

Stage completed: September 2013