Costs to sell

Learning objectives

• Identify and total the costs to sell: incremental costs directly attributable to the disposal, excluding finance costs and income tax expense.L1, L2

Normative references

• IFRS 5Costs to sell: incremental costs directly attributable to the disposal, excluding finance costs and income tax expense (Appendix A).

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

3 questions

• Which of these costs is part of the costs to sell of an asset held for sale?L1
• Verlin is preparing the disposal of a production line classified as held for sale. Costs linked to the transaction: intermediary's commission {commission}, legal fees for the disposal {legal_fees}, dismantling and transport to the buyer {removal_costs}, and interest on the loan that had financed the line {loan_interest}. Calculate the total costs to sell.L2
• Four statements are made about costs to sell. Which one is wrong?L2