The date of disposal

Learning objectives

• Determine the date of disposal (transfer of control under the revenue requirements).L2, L3

Normative references

• IAS 40 §67Date of disposal: for a sale, the date the recipient obtains control (requirements for determining when a performance obligation is satisfied in IFRS 15); disposal by entering into a finance lease and sale and leaseback: IFRS 16.

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

2 questions

• On what date is a sold investment property derecognised?L2
• On 15 November, Isarne signs a sale promise for an investment property, subject to conditions precedent. The final deed is signed and the keys handed to the buyer on 20 December, when the buyer obtains control (case facts). The reporting date is 31 December. On what date is the property derecognised?L3