Direct change between sale and distribution

Learning objectives

• Explain a direct reclassification between held for sale and held for distribution to owners, without applying the requirements for ceasing the classification.L3, L4

Normative references

• IFRS 5 §26ADirect reclassification from held for sale to held for distribution to owners (or vice versa): it is a continuation of the original plan of disposal; paras 27 to 29 do not apply; the entity applies the requirements for the new method of disposal, measures in accordance with para. 15 or 15A and accounts for any changes in accordance with paras 20 to 25; the date of classification is unchanged (it may be extended if para. 9 is met).

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

1 question

• When an asset moves directly from the 'sale' disposal method to the 'distribution to owners' method, its classification as an asset held for disposal continues.L3