Cost model and held-for-sale property

Learning objectives

• Place the treatment of a property held for sale in relation to IFRS 5 (cross-reference).L2, L3

Normative references

• IAS 40 §56Cost model: after initial recognition, (a) IFRS 5 if the property meets the criteria to be classified as held for sale; (b) IFRS 16 if the property is held by a lessee as a right-of-use asset and is not held for sale; (c) IAS 16 (cost model: depreciation and impairment) in all other cases.

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

2 questions

• An investment property measured under the cost model that meets the criteria for being held for sale remains subject to the IAS 16 cost model like the others.L2
• Evrane, which applies the cost model, decides to sell an investment property with a carrying amount of 2,400,000. The criteria for classification as held for sale are met on 30 June (case data). Which treatment is consistent with the rule?L3