Current asset b. Reclassification of a non-current asset - held for sale. Available-for-sale (AFS) is an accounting term used to describe and classify financial assets. Other noncurrent asset c. Noncurrent investment d. Property, plant and equipment: a: In order for a noncurrent asset to be classified as held for sale, the sale must be highly probable. A non-current asset (or disposal group) that is held for sale must be up for sale in its present condition and the sale … The users of the financial statements should be informed about these events. NON-CURRENT ASSETS HELD FOR SALE and DISCONTINUED OPERATIONS . IN1 Hong Kong Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations (HKFRS 5) sets out requirements for the classification, measurement and presentation of non-current assets held for sale and replaces SSAP 33 Discontinuing Operations. Asset (or disposal group) that are available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups); and. The objective of IFRS 5 is to specify how assets that are classified as ‘held for sale’ should be presented and disclosed within a set of financial statements, and discontinued operations. 1. B. The same applies for liabilities of a disposal group classified as held for sale. The classification also applies to disposal groups, which are a group of assets and possibly some liabilities which an entity intends to dispose of in a single transaction. When a company makes the decision to sell an asset or to stop some part of its business, it is making a decision that affects the future cash flows, profitability and overall financial situation. In the statement of financial position (IFRS5.38): you shall present a non-current asset or assets of a disposal group classified as held for sale separately from other assets. The decision to sell an asset, or plans to discontinue the operation to which an asset belongs, are considered an impairment indicator, which triggers an impairment review. The External Auditors would need to be assured that non-current assets classified as held for sale are: A. An entity classifies a non-current asset as held-for-sale if its carrying amount will be recovered mainly through selling the asset rather than through usage. The sale … [FRS 102 para 27.9(f)]. An NCA is an asset that does not meet the above ‘current asset’ definition. How an Available-for-Sale Security Works . Therefore, IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations was issued to highlight the Classification of non-current assets (or disposal groups) as held for sale or as held for distribution to owners. 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