Boundary with IAS 16

Learning objectives

• Distinguish the IAS 16 treatment before classification from the IFRS 5 treatment after it (cessation of depreciation, derecognition).L3, L4

Normative references

• IFRS 5 §25A non-current asset is not depreciated (or amortised) while it is classified as held for sale or while it is part of a disposal group so classified; interest and other expenses attributable to the liabilities of such a group continue to be recognised.

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

1 question

• An item of equipment within IAS 16 is classified as held for sale. Which consequence is consistent with IFRS 5?L3