assets that meet the criteria to be classified as held for sale to be measured at the lower of carrying amount and fair value less costs to sell, and depreciation on such assets to cease;assets that meet the criteria to be classified as held for sale to be presented separately in the balance sheet; andthe results of discontinued operations to be presented separately in the statement of profit and
The Ind AS 105:
adopts the classification ‘held for sale’.introduces the concept of a disposal group, being a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in theclassifies an operation as discontinued at the date the operation meets the criteria to be classified as held for sale or when the entity has disposed of the operation.
An entity shall classify a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups) and its sale must be highly probable. Thus, an asset (or disposal group) cannot be classified as a non-current asset (or disposal group) held for sale, if the entity intends to sell it in a distant future. For the sale to be highly probable, the appropriate level of management must be committed to a plan to sell the asset (or disposal group), and an active programme to locate a buyer and complete the plan must have been initiated. Further, the asset (or disposal group) must be actively marketed for sale at a price that is reasonable in relation to its current fair value. In addition, the sale should be expected to qualify for recognition as a completed sale within one year from the date of classification, except as permitted by paragraph 9 of the Standard, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale and:
represents a separate major line of business or geographical area of operations;is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; oris a subsidiary acquired exclusively with a view to
A component of an entity comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. In other words, a component of an entity will have been a cash-generating unit or a group of cash-generating units while being held for use. An entity shall not classify as held for sale a non-current asset (or disposal group) that is to be abandoned.
Difference Between AS 24 and Ind AS 105
Recommended Articles a component of an entity that represents the major line of business or geographical area, that can be distinguished operationally and for financial reporting purposes.
a component of an entity that represents a separate major line of business or geographical area, or is a subsidiary acquired exclusively with an intention of resale
Types of VouchersTypes of LeaseScope of AccountingBasic Principles of AccountingCA Final Admit CardCA Final RTPPan Card StatusCA IPCC RTPCA Final Question PapersIncome Tax Slab RatesSub Fields of Accounting
