this is what an asset held for sale is. I will not charge for this lesson, consider yourself fortunate. PLEASE NOTE THAT AN ASSET HELD FOR SALE IS A NON CURRENT ASSET... SAND AND GRAVEL THAT IS SOLD IN PBLS' EVERYDAY BUSINESS IS CALLED "INVENTORY".
AND IF YOU READ US FASB 144, YOU WILL ALSO SEE THAT FAIR VALUE CAN ONLY BE USED IF IT IS AN IMPAIRMENT. Impairment means that the fair value is LESS than the carrying cost, you know, just like mental impairment.
Held-for-sale classification. IFRS 5 establishes a classification for non-current assets 'held for sale' using the same criteria as those contained in US FASB Statement 144 Accounting for the Impairment or Disposal of Long-Lived Assets. In general, the following conditions must be met for an asset (or 'disposal group') to be classified as held for sale: [IFRS 5.6-8]
management is committed to a plan to sell
the asset is available for immediate sale
an active program to locate a buyer is initiated
the sale is highly probable, within 12 months of classification as held for sale (subject to limited exceptions)
the asset is being actively marketed for sale at a sales price reasonable in relation to its fair value
actions required to complete the plan indicate that it is unlikely that plan will be significantly changed or withdrawn.
The assets need to be disposed of through sale. Therefore, operations that are expected to be wound down or abandoned would not meet the definition (but may be classified as discontinued once abandoned). [IFRS 5.13]
I AM SURE YOU WILL FIND A WAY TO TWIST THIS VERY CLEAR DEFINITION TO SUIT YOUR ARGUEMENT.
