Gain or loss on disposal

Learning objectives

• Calculate the gain or loss not previously recognised at the date of derecognition.L2

Normative references

• IFRS 5 §24A gain or loss not previously recognised by the date of the sale is recognised at the date of derecognition, in accordance with the derecognition requirements of IAS 16 (property, plant and equipment) and IAS 38 (intangible assets).

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

3 questions

• Aubrel disposes of a building classified as held for sale and measured at {carrying_amount}. The sale price is {proceeds} and the costs to sell, paid at the disposal, are {costs_to_sell}. Calculate the gain on disposal recognised on derecognition.L2
• A press classified as held for sale is carried at {carrying_amount} by Lorien. It is sold for {proceeds}, and {costs_to_sell} of costs to sell are paid on that occasion. Calculate the loss on disposal, expressed as a positive amount.L2
• Estrel sells a plot of land classified as held for sale and carried at {carrying_amount}. It receives {net_proceeds} net of costs to sell. Post the disposal entry.L2