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

Standard 2024 Issued
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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.

Standard history

In April 2001 the International Accounting Standards Board (Board) adopted IAS 35 Discontinuing Operations, which had originally been issued by the International Accounting Standards Committee in June 1998.

In March 2004 the Board issued IFRS 5 Non‑current Assets Held for Sale and Discontinued Operations to replace IAS 35.

Other Standards have made minor consequential amendments to IFRS 5. They include Improvement to IFRSs (issued April 2009), IFRS 11 Joint Arrangements (issued May 2011), IFRS 13 Fair Value Measurement (issued May 2011), Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) (issued June 2011), IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) (issued November 2013), IFRS 9 Financial Instruments (issued July 2014), Annual Improvements to IFRSs 2012–2014 Cycle (issued September 2014), IFRS 16 Leases (issued January 2016), IFRS 17 Insurance Contracts (issued May 2017) and Amendments to References to the Conceptual Framework in IFRS Standards (issued March 2018).