Topic 1 Tangible Non-current Assets IFRS 5 Non-current Asset Held-for-sale and Discontinued Operation Classification as held for sale A non-current asset should be classified as “held for sale” if its carrying amount will be recovered principally through a sale transaction rather than through continuing use.

Topic 1 Tangible Non-current Assets IFRS 5 Non-current Asset Held-for-sale and Discontinued Operation Classification as held for sale For this to be the case, the following conditions must apply: Available for immediate sale The sale must be highly probable: Management committed Active program to locate a buyer Actively marketed Completed within 12 months Unlikely that the plan will be significantly changed

Topic 1 Tangible Non-current Assets IFRS 5 Non-current Asset Held-for-sale and Discontinued Operation Classification as held for sale In order to quality as held for sale, assets must be expected to be disposed of through sale. Operations that are to be abandoned or wound down gradually cannot be classified as held for sale, although they might meet the definition of discontinued operations once they have been abandoned.

Topic 1 Tangible Non-current Assets IFRS 5 Non-current Asset Held-for-sale and Discontinued Operation Measurement of non-current held for sale Non-current assets that qualify as held for sale should be measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss recognized, to write down an asset to its fair value less costs to sell, should normally be charged to the income statement. See IAS 36. Assets classified as held for sale must be presented separately on the face of the statement of financial position. They will qualify as current assets under rules of IAS 1. Once a non-current asset has been classified as held for sale, it should cease to be depreciated (or amortized).

Topic 1 Tangible Non-current Assets IFRS 5 Non-current Asset Held-for-sale and Discontinued Operation Discontinued operations (a group of asset) A discontinued operation is a component of an enterprise that either has been disposed of or is classified as held for sale, and: A separate major line of business or geographical area of operations Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; Is subsidiary acquired exclusively with a view to resale

Topic 1 Tangible Non-current Assets IFRS 5 Non-current Asset Held-for-sale and Discontinued Operation Discontinued operations (a group of asset) Presentation in the income statement An enterprise must disclose a single amount on the face of the income statement, comprising the total of: the post-tax profit or loss of discontinued operations the post-tax gain or loss recognized on the measurement to fair value less costs to sell

Topic 1 Tangible Non-current Assets IFRS 5 Non-current Asset Held-for-sale and Discontinued Operation Discontinued operations (a group of asset) Presentation in the income statement An analysis of this single amount must be presented, either in the notes or on the face of the income statement. The analysis must disclose: the revenue, expenses and pre-tax profit or loss of discontinued operations the related income tax expense the gain or loss recognized on the measurement to fair value less costs to sell, or on the disposal

Topic 1 Tangible Non-current Assets IFRS 5 Non-current Asset Held-for-sale and Discontinued Operation Discontinued operations (a group of asset) Presentation in the income statement: Continuing operations 20x2 Revenue x Expense (x) Pre-tax profit Income tax Profit for the period from continuing operations Discontinued operations Profit for the period from discontinued operations Total profit for the period