CERTYNEX IFRS ACADEMY

Norvane classifies a disposal group that includes an investment property measured under the IAS 40 fair value model and an industrial building. Which treatment is consistent with IFRS 5?

Both properties are measured at the lower of carrying amount and fair value less costs to sell, with no exception for the investment property.

The investment property leaves the group and the separate presentation, because it is excluded from measurement.

The industrial building follows the lower-of rule; the investment property keeps its fair value measurement and stays presented as held for sale.

The group is not classified, the exclusion of the investment property preventing classification of the industrial building.