CERTYNEX IFRS ACADEMY

Orvane classified a site as held for sale in March. Fourteen months later the sale has not closed because the competition authority has not yet ruled on the buyer. Orvane kept up its efforts and has not changed its plan. Which conclusion is consistent with IFRS 5?

Classification must cease, since the one-year period is exceeded, with no need to examine the cause of the delay.

Classification may be maintained: the delay stems from an outside event and the entity remains committed to its plan.

Classification is maintained without examining the cause of the delay, for as long as the site has not been sold to the buyer.

Classification is maintained provided the asking price is lowered to speed up the closing of the sale.