These are illustrative IFRS financial statements of a listed company, prepared in accordance with International Financial Reporting Standards. This standard prescribes the criteria and the accounting treatment for the non-current assets which are to be classified as held for sale, along with the presentation requirements for such assets. Back to Course Next Lesson. EY Asia Pacific IFRS Leader. IFRS 5 refers to the International Financial Reporting Standards relating to Non-current assets held for sale and discontinued operations. Let’s take a closer look to the main IFRS 5 rules. I also wrote this article for you to give you a few IFRS 15 examples and hints – all with the purpose to warn you. List of Examples 84. Illustrative disclosure. A company might hold an asset at the year end that it has the intension of selling. IFRS 5 specifies the accounting for assets held for sale and the presentation and disclosure of discontinued operations. Read ED/2019/7 General Presentation and Disclosures; Timeline . In the statement of cash flows: the net cash flow attributable to the operating, investing and financing activities of discontinued operations. This guide, in addition to providing detailed summaries and explanations of the requirements of IFRS 5, includes supplementary guidance and examples based on Deloitte's experience with the Standard. Michiel van der Lof. Visit our IFRS News section for further insights into International Financial Reporting Standards, IFRS 15 – Revenue from contracts with customers. © 2020 Punongbayan & Araullo - All rights reserved. Also, assets and liabilities that ar… It sets the presentation and disclosure requirements for discontinued operations. 5 Best + Free IFRS Courses & Classes [DECEMBER 2020] 1. GTIL does not provide services to clients. Link copied The team. Previous Post IAS 40 Investment Property | Examples | PDF. Income tax (expense) and reconciliations. Is a subsidiary acquired solely with a view to resale. See also Examples 5-7 accompanying IFRS 5. Disposal of subsidiaries, businesses and non-current assets – IFRS 5 44 Equity accounting – IAS 28 45 Joint arrangements – IFRS 11 46 Other subjects 47 Related-party disclosures – IAS 24 48 . IFRS 5 refers to the International Financial Reporting Standards relating to Non-current assets held for sale and discontinued operations. IFRS 5 PDF. When a company makes the decision to sell an asset or to stop some part of its business, it is making a decision that affects the future cash flows, profitability and overall financial situation. GTIL and each member firm is a separate legal entity. Inline XBRL ; ZIP; Example 6: First-time adoption of IFRSs, reconciliation of equity and total comprehensive income. Significant judgment is required in some areas. under IFRS 5 and the carrying value of the property was . 44D: Paragraphs 5A, 12A and 15A were added and paragraph 8 was amended by IFRIC 17 Distributions of Non- cash Assets to Owners in November 2008. However, IFRS 5 lists a few measurement exceptions: If any of the above assets are classified as held for sale, they must be measured under the same accounting policy as before the classification. IFRS 5 a été homologuée antérieurement par le règlement CE n° 2236/2004 du 29 décembre 2004. under IFRS 5 and the carrying value of the property was . Key findings • Timing of revenue recognition 5 • Variable consideration 9 • Revenue disaggregation 12 • Contract balances 13 • Significant judgements 14 • Costs to obtain or fulfil a contract 16 4. A non-current asset must be classified as held for sale if most of its carrying amount is expected to be recovered via future cash flows from the sale of the asset rather than future cash flows from use. GTIL and the member firms are not a worldwide partnership. P&A Grant Thornton uses cookies to monitor the performance of this website and improve user experience. IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations Quiz Free IFRS Quizzes IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations Quiz ) , () ) Previous Lesson. This is probably the longest article I have ever published (about 5 000 words and it took me about 30 hours to write it), but you don’t have to read it all, although I do recommend it as you will find a lot of analogy for your own situation. IFRS technical resources has all the technical guidance, latest thinking and tools from EY financial reporting professionals. The same applies for liabilities of a disposal group classified as held for sale. A discontinued operation is a component of an entity that (IFRS 5.32): has been disposed of, or is classified as held for sale, represents a separate major line of business or geographical area of operations, is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or It specifies the accounting treatment for assets (or disposal groups) held for sale, and 2. EY Global IFRS Services Leader. The post-tax gain or loss recognised on the disposal of assets or the disposal group making up the discontinued operation. Paragraph IFRS 5.9 provides an exception to the one-year-to-sale rule that is one of the criterion to be met for an asset/disposal group to be classified as held for sale. Leo van der Tas. Examples from IAS 12 (Example 2 - Illustrative disclosure) representing some of the disclosures required by IAS 12 for income taxes using block and detailed XBRL tagging. Tags: acca, acca study text, CFA STUDY TEXT, CIMA STUDY TEXT, gaap, ICAI STUDY TEXT, ICAP STUDY TEXT, ifrs, IFRS STANDARDS. You should take specific independent advice before making any business or investment decision. Clare Wong. Ifrs 5 Examples. In addition to cookies that are strictly necessary to operate this website, we use the following types of cookies to improve your experience and our services: Functional cookies to enhance your experience (e.g. RSM is the trading name used by the members of the RSM network. IFRS 5 will not apply to a non-current asset that is going to be abandoned, as the carrying amount of an abandoned asset will be recovered through future use. You … Example 5: Operating segments. ; IFRS 5 Non-current assets held for sale and Discontinued operations contains rules which impact the measurement and presentation of such assets i.e. During the lecture on the IFRS 5, discontinued operations, you stated that we only have to report and disclose a discontinued operations in the period that the asset was either sold or decided to be held for sale. Guidelines on Preventative Measures Against... SEC Memorandum Circular 2018-14 – PFRS 15 Implementation Issues Affecting Real Estate Industry. IFRS 5 Non-current Assets held for Sale and Discontinued Operations Accounting summary 2017 - 04 1 Objective The objective of this IFRS is to specify the accounting for assets held for sale, and the presentation and disclosure of discontinued operations. Represents a separate major line of business or geographical area of operations. View all. An illustrative example is included in paragraph IAS 39.F.5.5. IFRS 5 makes it clear that itesms should only be classified as held for sale once they have met all the criteria as set out in IFRS 5.07-5.11: Asset (or disposal group) must be available for immediate sale in its current condition, subject only to terms that are usual and customary for sale of such assets AND its sale must be highly probable. This exception is discussed in detail in paragraph IFRS 5.B1. 'Non-current Assets Held For Sale and Discontinued Operations - Challenges in Applying IFRS 5' is a publication by the IFRS team at Grant Thornton International Ltd. IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (IFRS 5) is not a new standard but experience has shown that implementing it can be a complex and time-consuming exercise. The post-tax profit or loss of the discontinued operation, The post-tax gain or loss recognised on the measurement to fair value less costs to sell, and. IFRS 5 Full Text Overview. The measurement basis of IFRS 5 does not apply to different standards for example; Deferred tax assets (IAS 12) Assets arising from employee benefits (IAS 19) Financial assets, which are under the scope of (IFRS 9) Non-current assets in Agriculture (IAS 41) Insurance contracts (IFRS 4) Presentation; The asset classified as held for sale and the disposal group assets and liabilities … IFRS 5 Non-cur­rent Assets Held for Sale and Dis­con­tin­ued Op­er­a­tions outlines how to account for non-cur­rent assets held for sale (or for dis­tri­b­u­tion to owners). For example, judgements made about the lease term or scope of the standard. INTRODUCTION IFRS 9 (2014) Financial Instruments1 has been developed by the International Accounting Standards Board (IASB) to replace IAS 39 Financial Instruments: Recognition and Measurement. Non-current assets classified as held for sale must be disclosed separately from other assets in the statement of financial position. Next Post IFRS 15 Revenue from contracts with customers. Intragroup transactions with discontinued operations. The ineffectiveness recognised in P/L is based on comparing the actual hedging instrument with hypothetical derivative (IFRS 9.B6.5.5). Latest. IFRS IN PRACTICE 2016 fi IFRS 9 FINANCIAL INSTRUMENTS 5 1. reassessed at Shs265,000. Any articles or publications contained within this website are not intended to provide specific business or investment advice. 28 series of 2020, IASB issues Interest Rate Benchmark Reform Phase 2, IFRIC 23 - Uncertainty Over Income Tax Treatments, Extension of Deadlines and Interim Procedures for the Submission of Printed/Hard Copies of Annual Reports, IASB Defers the Effective Date of IAS 1 Amendments, Guidelines on the Electronic Submission of the Annual Report and Audited Financial Statements to BSP, Filing of Annual Reports During the Temporary Closure of the SEC Main Office until July 26, 2020, Work Suspension at the SEC Main Office and Extension of Deadlines for Certain Corporations, Adjustment of Deadlines for Submission of Annual Reports to the SEC and Other Announcements, Filing of Reports and Other Documents in SEC Main Office during Temporary Closure, Options for the Submission of Reports, Applications and Other Documents to the SEC During Community Quarantine, COVID-19 Accounting Considerations for CFOs: Revenue Recognition, COVID-19 Accounting Considerations for CFOs: Government Grants, IASB Amends IFRS 16 to Provide Relief for Lessees Accounting for Rent Concessions during the COVID-19 Pandemic, COVID-19 Accounting for Lease Modifications, SEC Notice on the Opening of SEC Express System and SEC Express Nationwide Submission, Insurance Commission Circular Letters: Regulatory Reliefs, Online Submission of Reports, and Deferral of IFRS 17 Implementation, COVID-19 Accounting Implications for CFOs: Impairment of Intangible Assets and Goodwill, IASB Issues Narrow Scope Amendments to IFRS Standards, Procedures in the Filing of Audited Financial Statements and General Information Sheet after the Enhanced Community Quarantine, Extension of Deadline for the Submission of 2020 Annual and Quarterly Reports and AFS of Companies with Fiscal Year Ended January 31 to April 30, 2020, Understanding the Impact of COVID-19 on 2020 Deferred Tax Provisions, IASB Proposes Relief for Rent Concessions During the COVID-19 Pandemic, Extension of Period to File the General or Special Form for Financial Statements and Guidelines on Submission by Electronic Mail, Treatment of Net Unrealized Losses in the EFCDU/FCDU Book for Purposes of Determining Compliance with the EFCDU/FCDU Asset Cover Requirement, Guidelines on Reclassification of Debt Securities Measured at Fair Value to the Amortized Cost Category for Prudential Reporting to the BSP, Reporting the Impact of COVID-19 to your Business, Guidelines on Filing SEC Form 17-LC and 17-C Report, COVID-19: Financial Reporting and Disclosures, COVID-19 Outbreak: Accounting Implications, Guidelines for Filing of Reports through Electronic Mail with the SEC during ECQ Period, Application of IFRS 9 in Light of the Coronavirus Uncertainty, [UPDATE] Regulatory Relief for Entities Regulated by the Insurance Commission, Guidelines on Submission by Electronic Mail of Required Forms and Documents and Recognition of Electronic Signature, Guidelines for the Filing of General Information Sheet (GIS) During the COVID-19 Outbreak and Enhanced Community Quarantine, Additional Operational Relief for BSFIs Affected by Measures to Manage the Coronavirus Disease (COVID-19) Situation and its Health and Safety Risks, Alternative Means of Filing Reports, Communications and Other Documents with the SEC, SEC Relaxes the Requirements for Extension in the Filing of Annual Reports and/or Audited Financial Statements, Guidelines Covering the Conduct of Business in the Insurance Commission During the Community Quarantine Period, SEC Issues Guidelines on the Participation in Regular and Special Meetings through Remote Means of Communication, SEC Extends Deadline for Annual and Quarterly Reports for Companies affected by Covid-19. © 2020 RSM International Association. 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