Investment held for sale

Learning objectives

• Explain that an investment classified as held for sale falls within IFRS 5 and not within the equity method.L3

Normative references

• IAS 28 §20The entity applies IFRS 5 to an investment, or a portion of an investment, in an associate or a joint venture that meets the criteria to be classified as held for sale; any retained portion not so classified continues to be accounted for using the equity method until the classified portion is disposed of; after that disposal, the retained interest is accounted for under IFRS 9, unless it remains an associate or a joint venture, in which case the equity method continues to be applied.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• Alba SA holds 25% of Brise SA and has significant influence over it. At the reporting date, this investment meets the criteria for classification as held for sale under IFRS 5 (case data). How does Alba account for it?L3