CERTYNEX IFRS ACADEMY

Valdor operates a warehouse still used every day in its business. Management says it might sell it one day if a good offer came up, with no plan or action under way. What is the appropriate classification at closing?

It classifies it as held for sale, on the ground that a sale is contemplated and management does not rule out closing it.

It classifies it as held for sale, because the warehouse's fair value now exceeds its carrying amount.

It keeps the warehouse in its fixed assets, its carrying amount still being recovered through use.

It records it as a discontinued operation, on the ground that a sale is possible in time.