Measurement for distribution

Learning objectives

• Calculate the measurement of an asset held for distribution to owners.L3

Normative references

• IFRS 5 §15AAsset (or disposal group) held for distribution to owners: measured at the lower of its carrying amount and fair value less costs to distribute (incremental costs directly attributable to the distribution, excluding finance costs and income tax expense, footnote to para. 15A).

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

2 questions

• Garnel commits to distributing in kind to its shareholders a building classified as held for distribution to owners. Its carrying amount is {carrying_amount}. Case data: its fair value less costs to distribute is {measurement_base_amount}. Calculate the amount at which the building is measured.L3
• An asset held for distribution to owners is measured at the lower of its carrying amount and its fair value less costs to distribute.L3