The following statements are based on PFRS 5 – “Non-current Assets Held for Sale and Discontinued Operations”: Statement 1: An entity shall classify a non-current asset or disposal group as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. Statement 2: An extension of the period required to complete a sale does not preclude an asset or disposal group from being classified as held for sale if the delay is caused by events or circumstances beyond the entity’s control and there is sufficient evidence that the entity remains committed to its plan to sell the asset (or disposal group). Statement 3: An entity shall measure a non-current asset or disposal group classified as held for sale at the lower of its carrying amount and fair value less costs to sell. A. Only statement 1 is false C. Only statement 3 is true B. Only statement 2 is false D. All of the statements are true
The following statements are based on PFRS 5 – “Non-current Assets Held for Sale and Discontinued Operations”:
Statement 1: An entity shall classify a non-current asset or disposal group as held for sale if its carrying amount will
be recovered principally through a sale transaction rather than through continuing use.
Statement 2: An extension of the period required to complete a sale does not preclude an asset or disposal group
from being classified as held for sale if the delay is caused by events or circumstances beyond the
entity’s control and there is sufficient evidence that the entity remains committed to its plan to
sell the asset (or disposal group).
Statement 3: An entity shall measure a non-current asset or disposal group classified as held for sale at the lower
of its carrying amount and fair value less costs to sell.
A. Only statement 1 is false C. Only statement 3 is true
B. Only statement 2 is false D. All of the statements are true
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