Ceasing the classification

Learning objectives

• Determine that an asset ceases to be classified as held for sale when the criteria are no longer met or the plan is abandoned.L2, L3

Normative references

• IFRS 5 §26When the criteria in paras 7 to 9 (sale) or para. 12A (distribution) are no longer met, the entity ceases the classification and applies paras 27 to 29, except for a direct reclassification within para. 26A.
• IFRS 5 §29Removal of an individual asset or liability from a classified disposal group: the remaining group is measured as a group only if it still meets the criteria (paras 7 to 9, or 12A for distribution); otherwise, the non-current assets that individually meet the criteria are measured individually at the lower of their carrying amounts and fair value less costs to sell (or to distribute), and the others cease to be classified (para. 26).

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

2 questions

• When an asset ceases to meet the classification criteria, it is no longer classified as held for sale.L2
• The board of Ulvane officially gives up selling a site classified as held for sale, for lack of an acceptable offer. Which conclusion is consistent with IFRS 5?L3