Assets that are held for sale as discontinued operations
A)continue to be depreciated until sold.
B)are removed from the statement of financial position and are disclosed in the notes instead.
C)are not separately identified on the statement of financial position until they are sold.
D)are segregated and reported on the statement of financial position at the lower of their carrying amount and fair value.

Question

Quizplus · Accepted Answer

According to IFRS 5, assets held for sale as discontinued operations should be segregated and reported on the statement of financial position at the lower of their carrying amount and fair value. Therefore, option D is the correct answer. Option A is incorrect because once the asset is classified as held for sale, it should not be depreciated anymore. Option B is partially correct because the asset is removed from the statement of financial position, but it should be reported separately rather than being disclosed in the notes. Option C is incorrect because the asset should be separately identified on the statement of financial position once it is classified as held for sale.

Assets That Are Held for Sale as Discontinued Operations