Where should assets held for sale be recorded on the balance sheet?

Where should assets held for sale be recorded on the balance sheet?

• A. As a current asset under assets held for sale
• B. As a non-current asset
• C. As inventory
• D. As intangible asset

Answer: (A)

Under IFRS 5, assets held for sale are presented on the balance sheet as a current asset in a separate line item (assets held for sale). This shows they are expected to be disposed of within the near term (typically within 12 months) and, during this classification, depreciation ceases and the asset is measured at the lower of its carrying amount and its fair value less costs to sell. They are not shown as a non-current asset, nor as inventory or as an intangible asset, because the held-for-sale status changes both their presentation and measurement to reflect imminent disposal rather than ongoing use or ordinary sale.

Under IFRS 5, assets held for sale are presented on the balance sheet as a current asset in a separate line item (assets held for sale). This shows they are expected to be disposed of within the near term (typically within 12 months) and, during this classification, depreciation ceases and the asset is measured at the lower of its carrying amount and its fair value less costs to sell. They are not shown as a non-current asset, nor as inventory or as an intangible asset, because the held-for-sale status changes both their presentation and measurement to reflect imminent disposal rather than ongoing use or ordinary sale.