CERTYNEX IFRS ACADEMY

A disposal is expected beyond one year and the costs to sell will be paid at that time. Which treatment is consistent with IFRS 5 as currently in force, before IFRS 18 applies?

The costs to sell are taken at their nominal amount, without discounting.

The costs to sell are discounted, and the increase in their present value due to the passage of time is presented as a finance cost.

The costs to sell are discounted, and the unwinding increases the carrying amount of the asset.

The costs to sell are discounted, and the unwinding reduces the impairment loss already recognised.