Asset acquired for resale

Learning objectives

• Identify the case of an asset acquired exclusively with a view to its subsequent disposal and the criteria to be assessed at acquisition.L3

Normative references

• IFRS 5 §11Asset (or disposal group) acquired exclusively with a view to its subsequent disposal: classified as held for sale at the acquisition date only if the one-year requirement is met (except as permitted by para. 9) and it is highly probable that any other criteria not met at that date will be met within a short period following the acquisition (usually within three months).

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

1 question

• An entity acquires an asset exclusively with a view to resale. Which statement is consistent with IFRS 5?L3