Non-current Assets Held for Sale and Discontinued Operations

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).

CONTENTS

from paragraph

INTERNATIONAL FINANCIAL REPORTING STANDARD 5 NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

OBJECTIVE 1

SCOPE 2

CLASSIFICATION OF NON-CURRENT ASSETS (OR DISPOSAL GROUPS) AS HELD FOR SALE OR AS HELD FOR DISTRIBUTION TO OWNERS 6

Non-current assets that are to be abandoned 13

MEASUREMENT OF NON-CURRENT ASSETS (OR DISPOSAL GROUPS) CLASSIFIED AS HELD FOR SALE 15

Measurement of a non-current asset (or disposal group) 15

Recognition of impairment losses and reversals 20

Changes to a plan of sale or to a plan of distribution to owners 26

PRESENTATION AND DISCLOSURE 30

Presenting discontinued operations 31

Gains or losses relating to continuing operations 37

Presentation of a non-current asset or disposal group classified as held for sale 38

Additional disclosures 41

TRANSITIONAL PROVISIONS 43

EFFECTIVE DATE 44

WITHDRAWAL OF IAS 35 45

APPENDICES

A Defined terms

B Application supplement

C Amendments to other IFRSs

APPROVAL BY THE BOARD OF IFRS 5 ISSUED IN MARCH 2004

FOR THE ACCOMPANYING GUIDANCE LISTED BELOW, SEE PART B OF THIS EDITION

• IMPLEMENTATION GUIDANCE

FOR THE BASIS FOR CONCLUSIONS, SEE PART C OF THIS EDITION

• BASIS FOR CONCLUSIONS
• DISSENTING OPINIONS

International Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations (IFRS 5) is set out in paragraphs 1–45 and Appendices A–C. All the paragraphs have equal authority. Paragraphs in bold type state the main principles. Terms defined in Appendix A are in italics the first time they appear in the Standard. Definitions of other terms are given in the Glossary for International Financial Reporting Standards. IFRS 5 should be read in the context of its objective and the Basis for Conclusions, the Preface to IFRS Standards and the Conceptual Framework for Financial Reporting. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.