When an entity classifies a non-current asset as "held for sale":
A)the entity no-longer expects to recover its carrying amount through its use.
B)they are no longer of use to the entity and must be abandoned
C)always comprise part of a discontinued operation.
D)they continue to be depreciable assets

Question

Quizplus · Accepted Answer

When an entity classifies a non-current asset as "held for sale", it means that the entity no longer expects to recover its carrying amount through its use. Therefore, it is considered as a non-current asset held for disposal and is measured at the lower of its carrying amount and fair value less costs to sell. It is no longer depreciated and is presented separately in the balance sheet.

When an Entity Classifies a Non-Current Asset as "Held for Sale