ACCA FR · Chapter 3 · Question 9 of 12
Which of the following is NOT a condition for classifying a non-current asset as held for sale under IFRS 5?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A binding sale agreement must have been signed with a buyer by the reporting date
Explanation
IFRS 5 requires the asset to be available for immediate sale in its present condition and the sale to be highly probable. High probability means management is committed to a plan, an active programme to find a buyer has begun, the price is reasonable and completion is expected within 12 months. A signed binding agreement is not required.
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