Question bank — IFRS 5 — Non-current Assets Held for Sale and Discontinued Operations
105 questions in FR/EN/ES, scored by the real scoring engine.
Purpose of the standard1 question
Scope of classification and presentation1 question
The group measured as a whole2 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.True / falseL1
- 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?Single choiceL3
Measurement exclusions1 question
Other assets with their own measurement1 question
Assets held for distribution (scope)1 question
Recovery through sale2 questions
- Under IFRS 5, which principle underlies the classification of a non-current asset as held for sale?Single choiceL1
- Valdor operates a warehouse still used every day in its business. Management says it might sell it one day if a good offer came up, with no plan or action under way. What is the appropriate classification at closing?Single choiceL2
Availability for immediate sale2 questions
- An asset can be judged available for immediate sale only if a buyer has already been identified.True / falseL1
- Lorand decides to sell a fleet of delivery trucks. The trucks stay in service until handed over to the buyer, no buyer has been identified, and sales of used trucks usually take place on a firm offer after a prior inspection. Write a short note justifying whether the criterion of availability for immediate sale is met.JudgmentL2
Highly probable sale2 questions
Buyer search, reasonable price and stable plan2 questions
- Brenan has offered a plant for sale for several months at a price far above any reasonable estimate of its fair value, and no offer has come in. Case assumption: the other elements of the plan are in place. Which conclusion is consistent with the price criterion?Single choiceL2
- The Mervil group has instructed an intermediary to find a buyer for its logistics subsidiary. The board approved the plan, contacts have taken place with several candidates, the asking price is close to an independent estimate of fair value, but the main shareholder privately mentions a possible withdrawal if the market recovers. Write a note assessing whether the plan supports a conclusion that the sale is highly probable.JudgmentL3
Sale expected within a year2 questions
- The expectation that the sale will be completed within one year is one of the items used to judge that a sale is highly probable.True / falseL1
- On 30 September, Telmar meets all the items of a plan to sell an industrial site. The sale is expected in May of the following year, i.e. after the 31 December closing but within one year. Which conclusion is consistent with the timing item?Single choiceL2
Period beyond one year outside the entity's control1 question
Loss of control of a subsidiary1 question
Asset acquired for resale1 question
Criteria met after the reporting period1 question
Held for distribution to owners1 question
Abandoned assets1 question
Assets temporarily out of use1 question
The lower of the two amounts3 questions
- At what amount is an asset classified as held for sale measured?Single choiceL1
- On 30 June, Maren classifies a press as held for sale. Its carrying amount, after updating depreciation, is …. Case assumption: its fair value is … and the costs to sell are estimated at …. Calculate the fair value less costs to sell, then the amount at which the press is measured.CalculationL2
- A disposal group has a carrying amount of €1,200,000 after updating its items. Case assumption: its fair value is €1,250,000 and the costs to sell are €80,000. At what amount and with what effect is the group measured?Single choiceL3
Fair value less costs to sell3 questions
- Fair value less costs to sell is calculated by deducting from fair value the incremental costs directly attributable to the disposal.True / falseL1
- Dulac classifies a warehouse as held for sale. Case assumption: its fair value is … and the costs to sell (agent's commission and deed fees) are estimated at …. Calculate fair value less costs to sell.CalculationL2
- The Calvet group has to measure a warehouse held for sale. Two indications are available: a firm offer from a buyer at €700,000 and an independent expert's estimate at €660,000, with costs to sell estimated at €20,000. The carrying amount is €690,000. Write a note that selects a fair value, justifies the choice from the facts of the case, calculates fair value less costs to sell and concludes on measurement.JudgmentL3
Costs to sell3 questions
- Which of these costs is part of the costs to sell of an asset held for sale?Single choiceL1
- Verlin is preparing the disposal of a production line classified as held for sale. Costs linked to the transaction: intermediary's commission …, legal fees for the disposal …, dismantling and transport to the buyer …, and interest on the loan that had financed the line …. Calculate the total costs to sell.CalculationL2
- Four statements are made about costs to sell. Which one is wrong?Single choiceL2
Discounting of costs to sell2 questions
- A disposal is expected beyond one year and the costs to sell will be paid at that time. Which treatment is consistent with IFRS 5 as currently in force, before IFRS 18 applies?Single choiceL3
- Havrin classifies a site as held for sale, but the disposal and the payment of the costs to sell, estimated at …, are expected in … years. Case assumption: the discount rate is …% a year. Calculate the present value of the costs to sell, rounded to the euro.CalculationL4
Asset acquired and classified at acquisition2 questions
- As part of a business combination, Ostrel acquires a site that it classifies as held for sale from acquisition. Case assumption: its fair value at the acquisition date is … and the costs to sell are estimated at …. Calculate the amount of the initial measurement.CalculationL3
- Belcor acquires in a business combination a group of assets that it intends to resell and classifies as held for sale from acquisition. The seller carried it at €900,000. Case assumption: its fair value at the acquisition date is €1,000,000 and the costs to sell are €40,000. At what amount is it initially measured?Single choiceL4
Carrying amount before reclassification3 questions
- Quentel acquired a machine at a cost of …, with a residual value of … and a useful life of … years, depreciated on a straight-line basis. It classifies it as held for sale after … months of use. Calculate accumulated depreciation at the classification date, then the carrying amount at that date (no impairment otherwise).CalculationL2
- Rovan recognised depreciation on a press up to 31 March. It classifies it as held for sale on 30 June. The depreciable amount is …, the useful life … years (straight-line) and … months have elapsed since the last charge. Post the entry for the last depreciation charge before classification.Journal entryL2
- On 30 June, Pernal classifies a machine as held for sale. Its carrying amount at the last closing was €650,000; depreciation for the last months, not yet recognised, is €30,000. Case assumption: fair value less costs to sell is €635,000. Which conclusion is consistent?Single choiceL3
Prior remeasurement of the group2 questions
- On a subsequent remeasurement, the assets of a disposal group, once remeasured under the applicable standards, total … and its liabilities, also remeasured, total …. Calculate the carrying amount of the group that will be compared with fair value less costs to sell.CalculationL3
- Four statements concern the prior remeasurement of a disposal group. Which one is wrong?Single choiceL4
Write-down loss on classification4 questions
- Sovrel classifies a building as held for sale. Its carrying amount is …. Case assumption: its fair value is … and the costs to sell are estimated at …. Calculate the measured amount and the impairment loss to recognise.CalculationL2
- Treval has just classified a group as held for sale. Its carrying amount, after prior remeasurement, is … and its fair value less costs to sell is …. Post the entry recognising the impairment loss.Journal entryL3
- When an asset is brought down to its fair value less costs to sell, the impairment loss is recognised in profit or loss.True / falseL2
- Calvane classifies a warehouse as held for sale and writes it down to its fair value less costs to sell, which results in an impairment loss of 80,000. Case data: the warehouse is not part of a discontinued operation. Where is this loss presented?Single choiceL2
Reversal limited to the cumulative loss3 questions
- Ivrane recognised last year a cumulative loss of … on a disposal group. This year, the group's fair value less costs to sell increases by …. Calculate the gain to recognise and the part of the increase that is not recognised.CalculationL2
- A disposal group of Mérovel has borne a cumulative loss of …. At the closing, its fair value less costs to sell increases by …. Post the entry for the gain.Journal entryL3
- After an asset is classified as held for sale, its fair value less costs to sell increases. Within what limit is a gain recognised?Single choiceL2
Allocation of a group's loss3 questions
- A disposal group of Hallen suffers an impairment loss of …. Within the measurement scope it includes a machine (…), a building (…) and a patent (…), as well as a financial asset outside the measurement scope (…). Case convention: the group contains no goodwill and the loss is allocated pro rata to the carrying amounts of the assets within the measurement scope, with no floor per asset. Calculate the loss allocated to each of the three assets.CalculationL3Variant
- Kerval classifies a disposal group and recognises a loss of … after measuring the group. The group contains equipment (…) and software (…), both within the measurement scope, and a deferred tax asset (…) that is excluded from it. Case convention: no goodwill in the group, allocation pro rata to the carrying amounts of the assets in scope, with no floor. What loss is allocated to the equipment and to the software?CalculationL4Variant
- The disposal group of Zindal has a carrying amount of … after prior remeasurement, and a fair value less costs to sell of …. Case convention: the loss is entirely allocated to the non-current assets within the measurement scope. Post the entry for the allocated loss.Journal entryL4
Gain or loss on disposal3 questions
- Aubrel disposes of a building classified as held for sale and measured at …. The sale price is … and the costs to sell, paid at the disposal, are …. Calculate the gain on disposal recognised on derecognition.CalculationL2Variant
- A press classified as held for sale is carried at … by Lorien. It is sold for …, and … of costs to sell are paid on that occasion. Calculate the loss on disposal, expressed as a positive amount.CalculationL2Variant
- Estrel sells a plot of land classified as held for sale and carried at …. It receives … net of costs to sell. Post the disposal entry.Journal entryL2
End of depreciation3 questions
- A non-current asset classified as held for sale continues to be depreciated until its disposal.True / falseL1
- Maurel depreciates a packaging line on a straight-line basis; its depreciable amount is … and its useful life … years. It classifies it as held for sale after … months of use. Calculate accumulated depreciation at the classification date, then the annual charge that stops being recognised after classification.CalculationL2
- On 30 September, Brivel classifies as held for sale a machine whose net carrying amount, after the last depreciation charge, is …. Case convention: fair value less costs to sell is higher, so there is no loss. Post the reclassification entry.Journal entryL2
Expenses on the group's liabilities2 questions
- A disposal group of Pavrel includes a loan of …, at …% a year. The interest for … months has accrued at the closing. Post the entry for the quarter's interest.Journal entryL3
- A disposal group includes an interest-bearing loan. What happens to the interest after the group is classified?Single choiceL3
Measurement for distribution2 questions
- Garnel commits to distributing in kind to its shareholders a building classified as held for distribution to owners. Its carrying amount is …. Case data: its fair value less costs to distribute is …. Calculate the amount at which the building is measured.CalculationL3
- An asset held for distribution to owners is measured at the lower of its carrying amount and its fair value less costs to distribute.True / falseL3
Ceasing the classification2 questions
Measurement on ceasing the classification4 questions
- Tavrel gives up selling a machine classified as held for sale. Its carrying amount before classification was …. The depreciation that would have been recognised had the machine never been classified amounts to …. Calculate the carrying amount adjusted for the depreciation not recognised.CalculationL2
- Nerval ends the classification of a site as held for sale. Its carrying amount, adjusted for the depreciation not recognised, is …. Case assumption: its recoverable amount at the date of the decision not to sell is …. Calculate the measured amount on ceasing classification and the corresponding unfavourable adjustment.CalculationL3
- Four statements concern the measurement of an asset leaving the held-for-sale classification. Which one is wrong?Single choiceL3
- Corvel had classified a building as held for sale at a carrying amount of €900,000. It gives up the sale after 18 months. Case convention: the annual depreciation that would have been recognised is €60,000, i.e. €90,000 for the period. The recoverable amount at the date of the decision is €840,000. At what amount is the building measured on ceasing classification?Single choiceL4
Adjustment in profit from continuing operations2 questions
- An asset leaves the held-for-sale classification and its carrying amount is adjusted. Where is the adjustment presented?Single choiceL3
- Yralen gives up selling a warehouse that was classified as held for sale for … months. Its depreciable amount is … and its useful life … years (straight-line). Case convention: the adjusted carrying amount remains below the recoverable amount. Post the entry adjusting for the depreciation not recognised.Journal entryL3
Direct change between sale and distribution1 question
Disclosure on the change of plan1 question
The component of an entity2 questions
- Under IFRS 5, what is a component of an entity?Single choiceL1
- The Delmar group has three divisions: 'Beverages', which has its own plants, sales teams, management accounting and cash; 'Canned goods', integrated in the same organisation as the rest of the group; and a central IT department serving the whole group. Which one can be a component?Single choiceL3
Definition of a discontinued operation2 questions
- Any disposal of a significant asset of the entity is a discontinued operation.True / falseL1
- The Portel group sells its operating subsidiary in South America, which is a component: it operates alone on that continent, with its own organisation and cash flows. The CFO asks whether, since the subsidiary accounts for only a small share of consolidated revenue, the sale can be excluded from discontinued operations. Write a note that settles the point, specifying what the assessment rests on and ruling out any numeric threshold.JudgmentL4
Subsidiary acquired for resale1 question
The single amount3 questions
- Norbel's transport business is a discontinued operation. Over the year, its revenue is …, its expenses … and the corresponding income tax … (case datum). Calculate the post-tax result of the discontinued operation for the year.CalculationL2
- The Printing division of Salvan is a discontinued operation. Its post-tax operating result for the year is a profit of …. Measuring the division at the lower of carrying amount and fair value less costs to sell led to a post-tax loss of …. Calculate the single amount to present for the discontinued operation.CalculationL3
- The Rivarel group presents a discontinued operation whose post-tax result is a profit of €140,000 and whose measurement at the lower amount led to a post-tax loss of €50,000. Which presentation is consistent with IFRS 5?Single choiceL4
Analysis of the single amount3 questions
- Hexal's trading business, discontinued during the year, has revenue of … and expenses of …. The tax effect is a tax benefit of … (case datum). Calculate the post-tax loss to show in the analysis of the single amount, expressed as a positive amount.CalculationL3
- About the analysis of the single amount for discontinued operations, which statement is consistent with IFRS 5?Single choiceL3
- The Ténéris group discontinues its Leisure division. Over the year: revenue …, expenses …, tax on that result …. Measuring the division at fair value less costs to sell produces a pre-tax loss of …, with a tax benefit of … (case data). Calculate the post-tax operating result, the post-tax measurement loss and the single amount.CalculationL4
Separate income statement1 question
Cash flows of the discontinued operation1 question
Restated comparatives2 questions
- The comparative periods of the income statement are restated so that discontinued operations are presented separately.True / falseL2
- In N, Quirel classifies its Textile division as a discontinued operation. Its N-1 income statement, already published, included the revenue and expenses of that division in each line. Which treatment of the N-1 comparative is consistent with IFRS 5?Single choiceL3
Adjustments in later periods1 question
Reclassification to continuing operations1 question
Loss of control and retained interest1 question
Assets presented separately2 questions
Liabilities without offsetting2 questions
- How are the liabilities of a group classified as held for sale presented in relation to its assets?Single choiceL2Variant
- At the closing, Ostane's disposal group includes assets of €1,500,000 and directly related liabilities of €400,000. The accountant suggests a single net line of €1,100,000 on the assets side. Which presentation is consistent with IFRS 5?Single choiceL3Variant
Main classes2 questions
- What must be shown about the assets and liabilities of a group classified as held for sale?Single choiceL2
- The Dorlan group acquires Emeric exclusively with a view to resale. Case data: from the acquisition date, Emeric meets the conditions to be classified as held for sale. What must Dorlan do about the major classes of Emeric's assets and liabilities?Single choiceL3