Availability for immediate sale

Learning objectives

• Determine whether an asset is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such assets.L1, L2

Normative references

• IFRS 5 §7Availability criterion: the asset is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such assets.

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

2 questions

• An asset can be judged available for immediate sale only if a buyer has already been identified.L1
• Lorand decides to sell a fleet of delivery trucks. The trucks stay in service until handed over to the buyer, no buyer has been identified, and sales of used trucks usually take place on a firm offer after a prior inspection. Write a short note justifying whether the criterion of availability for immediate sale is met.L2