Wiley IFRS: Practical Implementation Guide and Workbook, 3rd Edition

Chapter 36

NONCURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (IFRS 5)

BACKGROUND AND SCOPE

The purpose of IFRS 5 is to specify the accounting for assets held for sale and the presentation and disclosure of discontinued operations.

IFRS 5 was issued by the IASB in 2004 and replaced IAS 35, Discontinued Operations, which was issued by the International Accounting Standards Committee (IASC), the IASB’s predecessor.

IFRS 5 and its accompanying documents have been amended by the following IFRS:

IFRS 8 (issued November 2006), IAS 1 (as revised in 2007), IFRS 3 (as revised in 2008), IAS 27 (as amended in 2008), “Improvements to IFRS 2008” (issued in 2008), IFRIC 17 (issued in 2008), “Improvements to IFRS 2009”(issued in 2009), and IFRS 9 (issued in 2009).

The measurement provisions of this International Financial Reporting Standard (IFRS) do not apply to deferred tax assets, assets arising from employee benefits, financial assets within the scope of IAS 39, noncurrent assets accounted for in accordance with the fair value model in IAS 40, noncurrent assets that are measured at fair value less estimated point-of-sale costs under IAS 41, and contractual rights under insurance contracts as defined in IFRS 4.

The IASB’s Annual Improvements Project, “Improvements to IFRS 2009,” added paragraphs 5B and 44E to IFRS 5. These amendments to IFRS 5 clarify that IFRS 5 prescribes disclosure requirements in respect of noncurrent assets (or disposal groups) classified as held for sale ...