IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations
Financial Dictionary — IFRS & IAS Standards
Definition
IFRS 5 sets criteria for classifying assets as held for sale and requires them to be measured at the lower of carrying amount and fair value less costs to sell. It also describes how to present discontinued operations.
Detailed Explanation
IFRS 5 sets criteria for classifying assets as held for sale and discontinued operations, and measures such assets at the lower of carrying amount and fair value less costs to sell.
Common Uses
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Practical Example
- Example: When preparing year-end reporting, management applies **IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations** to determine the correct IFRS treatment and disclosures.
Why This Term Matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.