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Ind AS 105, Non-current Assets Held for Sale and Discontinued Operations, Summary

Indian Accounting Standard (Ind AS) 105 Summary

Indian Accounting Standard (Ind AS) 105, Non-current Assets Held for Sale and Discontinued Operations requires non-current assets and some groups of assets and liabilities (known as disposal groups) to be classified as held for sale when their carrying amounts will be recovered principally through sale rather than through their continuing use.

Assets classified as held for sale are not amortised or depreciated.

Non-current assets and disposal groups held for sale are generally measured at the lower of their carrying amount and fair value less cost to sell, and are presented separately on the face of the balance sheet.

The comparative balance sheet is not re-presented when a non-current asset or disposal group is classified as held for sale.

The classification, presentation and measurement requirements that apply to items that are classified as held for sale also apply to a non-current asset or disposal group that is classified as held for distribution.

A discontinued operation is a component of the entity that either has been disposed off or classified as held for sale.

Discontinued operations are limited to those operations that are a separate major line of business or geographical area, and to subsidiaries acquired exclusively with a view to resell.

Discontinued operations are presented separately on the face of the statement of profit and loss.

The comparative statement of profit and loss is restated for discontinued operations.

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