The group measured as a whole

Learning objectives

• Explain that a disposal group is measured as a whole, with its assets and directly associated liabilities taken together.L1, L2, L3

Normative references

• IFRS 5 §4Disposal group: a group of assets (and directly associated liabilities) to be disposed of together in a single transaction, which may include current assets and liabilities and assets excluded from the measurement scope; if a non-current asset within the measurement scope is part of it, the IFRS 5 measurement requirements apply to the group as a whole; individual assets and liabilities are measured in accordance with paras 18, 19 and 23.

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

2 questions

• When a non-current asset is part of a disposal group, the standard's measurement requirement applies to the group taken as a whole.L1
• Aldric classifies a disposal group made of a machine (carrying amount €300,000) and a patent (carrying amount €200,000), both within the measurement scope. The group, measured as a whole, has a fair value less costs to sell of €450,000. Case convention: the assets and liabilities have already been measured under the applicable standards. Which approach is consistent with the standard?L3