- 4 Marks
FR – Nov 2017 – L2 – Q2a – IFRS 5: Non-current assets held for sale and discontinued operation
Classify assets for sale under IFRS 5 and apply measurement rules.
Question
Atta Kay Ltd has the following assets which it would like to classify under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations today:
| Asset | Carrying Amount (GH¢million) | Open Market Value (GH¢million) | Estimated Selling Costs (GH¢million) |
|---|---|---|---|
| Investment properties (at fair value through profit or loss) | 62.3 | 30.9 | 0.5 |
| Land used as company car park (held under the revaluation model) | 49 | 50.5 | 1.0 |
| Trade Receivables | 28 | 24 | 1.0 |
| Plant (held under the cost model) | 14 | 10 | 0.5 |
Required:
Calculate the carrying amount of assets that can be classified as held for sale (assuming the relevant criteria are met where appropriate), after applying the measurement rules of IFRS 5.
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