Revision question on IFRS 5 (Criteria used to classify asset as held for sale)

In  accordance  with  IFRS  5: Non-Current  Assets  Held  for  Sale  and  Discontinued Operations, a non-current asset (disposal group) is classified as “held for sale” if it’s carrying amount  will  be recovered  principally through  a sale transaction  rather than through continuing use. However, to qualify to be classified as held for sale, a detailed criteria must be met.


Identify any TWO criteria to be met before an asset can be classified as held for sale.

By amidu edson

I am certified accountant with more than 5 years of teaching experience. Currently am teaching auditing and assurance, management accounting and financial accounting for student preparing for professional exams such as ACCA and CPA.

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