IFRS 5

Which of the following are not in the measurement scope of IFRS 5?

• Investment property on the cost model

• Investment property on the fair value model

• Deferred tax assets

• Inventories

Investment property on the fair value model cannot be classified and presented as a non-current asset held for sale.

• True

• False

Which of the following is not an IFRS 5 classification requirement?

• Management should intend to conclude the sale of the asset within 12 months

• Management should be committed to the sale of the asset

• The company should not use the asset after the date on which it resolves to sell the asset

• The company should be able to sell the asset immediately, subject to terms that are normal for the sale of the asset

Where in the SoFP will non-current assets held for sale be presented?

• Non-current assets

• Current assets

• Non-current liabilities

• It is not presented in the SoFP

Company A's board has resolved to sell an item of PPE. The company still has standing contracts in place for which the PPE item is required and the board does not intend to cancel these contracts. The PPE can only be sold once all Company A's contracts have been fulfilled. The asset can be classified as a non-current asset held for sale.

• True

• False

An asset can be classified as a non-current asset held for sale even if it is expected to take longer than 12 months to sell.

• True, but only if the extended period is due to circumstances beyond the control of the entity and the entity remains committed to sell

• False

How is a non-current asset held for sale subsequently measured?

• Remeasured to fair value at each reporting date

• Remeasured to fair value, but only when it differs materially from the carrying amount

• Remeasured to fair value less cost to sell at each reporting date

• Remeasured to fair value less cost to sell, but only when it differs materially from the carrying amount

The cost to sell used in the fair value less cost to sell...

• must always be undiscounted

• must always be undiscounted, except when the sale is expected to occur after 12 months, in which case it should be discounted

• must always be discounted

Which of the following journal entries best represent a remeasurement of a NCAHFS from R200 000 to R150 000?

• Dr. Impairment loss (p/l) R50 000

  Cr. NCAHFS (SFP) R50 000

• Dr. Impairment loss (OCI) R50 000

  Cr. NCAHFS (SFP) R50 000

• Dr. Impairment loss (p/l) R150 000

  Cr. NCAHFS (SFP) R150 000

• Dr. Impairment loss (OCI) R150 000

  Cr. NCAHFS (SFP) R150 000

When a company withdraws their intention to sell a NCAHFS which was previously classified as PPE...

• the NCAHFS is not remeasured on that date and is transferred to PPE at its current carrying amount

• the NCAHFS is remeasured to its fair value less cost to sell and then transferred to PPE at this remeasured value

• the NCAHFS is remeasured to the higher of its recoverable amount and the carrying amount it would have had if it had never been measured in terms of IFRS 5, and then transferred to PPE at this remeasured value

• the NCAHFS is remeasured to the lower of its recoverable amount and the carrying amount it would have had if it had never been measured in terms of IFRS 5, and then transferred to PPE at this remeasured value