The users of the financial statements should be informed about these events. 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. Reclassification of a non-current asset - held for sale. The same applies for liabilities of a disposal group classified as held for sale. An NCA is an asset that does not meet the above ‘current asset’ definition. A non-current asset (or disposal group) that is held for sale must be up for sale in its present condition and the sale … How an Available-for-Sale Security Works . FRS 102 does not have a ‘held for sale’ classification for non-current assets or groups of assets and liabilities. 4 eg. 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. 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. BACKGROUND . Available-for-sale (AFS) is an accounting term used to describe and classify financial assets. B. The External Auditors would need to be assured that non-current assets classified as held for sale are: A. 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. If the asset continues to be held for sale but at a price in excess of its fair value, then in the absence of a price reduction the asset is not available for immediate sale. 1. 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. 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. [FRS 102 para 27.9(f)]. Noncurrent asset classified as held for sale shall be presented in the statement of financial position as a. 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. 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. 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. 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