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(PDF) Quick Reference on Ind AS 105

Download Quick Reference on Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations

The objective of this Standard is to specify the accounting for assets held for sale, and the presentation and disclosure of discontinued operations.

In particular, this Ind AS requires in respect of assets that meet the criteria to be classified as held for sale:

(a) to be measured at the lower of carrying amount and fair value less costs to sell, and depreciation on such assets to cease;

(b) to be presented separately in the balance sheet; and

(c) the results of discontinued operations to be presented separately in the statement of profit and loss.

The Standard:

(a) adopts the classification ‘held for sale’;

(b) introduces the concept of a disposal group, being a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction;

(c) classifies an operation as discontinued at the date the operation meets the criteria to be classified as held for sale or when the entity has disposed of the operation.

An entity shall classify a non-current asset (or disposal group) {referred for brevity as ‘Assets’} as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. Sale includes exchange of non-current assets when the exchange has commercial substance in accordance with Ind AS 16.

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