Expenses on the group's liabilities

Learning objectives

• Explain that interest and other expenses attributable to the liabilities of a disposal group continue to be recognised.L3

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.

2 questions

• A disposal group of Pavrel includes a loan of {liability_amount}, at {interest_rate}% a year. The interest for {months} months has accrued at the closing. Post the entry for the quarter's interest.L3
• A disposal group includes an interest-bearing loan. What happens to the interest after the group is classified?L3