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    NFRS 5

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    abhilekh2055
    NFRS 5 provides guidelines on the accounting and reporting of non-current assets held for sale and discontinued operations. It outlines criteria for classifying non-current assets as held for sale, and requires them to be measured at the lower of carrying amount or fair value less costs to sell. It also provides guidance on presenting discontinued operations separately in financial statements. The standard aims to improve transparency around assets and operations being disposed of or wound down.

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    NFRS 5

    Uploaded by

    abhilekh2055
    78 views14 pages
    NFRS 5 provides guidelines on the accounting and reporting of non-current assets held for sale and discontinued operations. It outlines criteria for classifying non-current assets as held for sale, and requires them to be measured at the lower of carrying amount or fair value less costs to sell. It also provides guidance on presenting discontinued operations separately in financial statements. The standard aims to improve transparency around assets and operations being disposed of or wound down.

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    NFRS 5 provides guidelines on the accounting and reporting of non-current assets held for sale and discontinued operations. It outlines criteria for classifying non-current assets as held for sale, and requires them to be measured at the lower of carrying amount or fair value less costs to sell. It also provides guidance on presenting discontinued operations separately in financial statements. The standard aims to improve transparency around assets and operations being disposed of or wound down.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    78 views14 pages

    NFRS 5

    Uploaded by

    abhilekh2055
    NFRS 5 provides guidelines on the accounting and reporting of non-current assets held for sale and discontinued operations. It outlines criteria for classifying non-current assets as held for sale, and requires them to be measured at the lower of carrying amount or fair value less costs to sell. It also provides guidance on presenting discontinued operations separately in financial statements. The standard aims to improve transparency around assets and operations being disposed of or wound down.

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    You are on page 1of 14

    NFRS 5

    Non Current Assets Held For Sale


    and Discontinued Operations

    Date: 27th Dec 2023....| Venue: SKACA Bishalnagar, KTM. | Presented By: Mr. Abhilekh Shah

    1
    Inside We Have -

     Non Current Assets Held For Sale


     Discontinued Operations

    Sujan Kafle & Associates, Chartered Accountants 2


    Introduction to NFRS 5

    Nepal Accounting
    Issued by
    Standards Board

    NFRS 5 Accounting and


    Reporting of
    NCAHFS
    Objective Guidelines
    Presentation of
    Discontinued
    Operations

    Sujan Kafle & Associates, Chartered Accountants


    Scope of NFRS 5
    For Sale
    Non-Current
    Assets Held
    For Distribution
    to Owners
    Disposal Groups

    Exclusively To be
    NFRS 5 with a view to Abandoned
    Subsidiary Resale

    Discontinued
    Operations Partial
    Disposal
    Associates Partial Disposal

    Sujan Kafle & Associates, Chartered Accountants


    Not within the Scope of NFRS 5
    NAS
    12
    NAS NAS
    41 19

    NAS
    NFRS 4
    40
    NAS
    39

    Sujan Kafle & Associates, Chartered Accountants


    Classification as held for sale

    Available for
    Immediate Sale
    Carrying
    Held For Sale recovered
    through Sale
    Sale highly
    probable

    Sujan Kafle & Associates, Chartered Accountants


    Criteria for sale to be highly probable
    • Entity must be committed to a plan to sell the asset.
    • There must be an active program to find the buyer.
    a. Sale is expected to be completed within a period of 1 year from the date of
    classification.
    b. If it is beyond 1 year, the circumstances must be beyond the control of the
    entity.
    • Withdrawal from the plan to sell the asset is highly unlikely.
    • Price quoted by the entity must be reasonably close to its fair value.

    Sujan Kafle & Associates, Chartered Accountants


    Measurement
    Carrying
    Amount
    Lower of :

    Fair Value less


    Costs to Sale
    As held for Sale
    or Disposal Measurement
    Depreciation
    Group
    Ceases

    Impairment Charged to SOPL

    Sujan Kafle & Associates, Chartered Accountants


    Changes in Plan

    Carrying Amount –
    Acc. Depreciation –
    Acc. Impairment loss
    Non Current Asset Changes in Plan Lower of :
    classified for Sale
    Recoverable Amount
    at the date of
    decision not to sale

    Sujan Kafle & Associates, Chartered Accountants


    Discontinued Operations
    part of a single, coordinated plan to
    dispose of a separate, major line of
    business or geographical area

    Discontinued a separate and significant line of business


    Operations or geographical area

    a subsidiary acquired exclusively with a


    view to resale

    Sujan Kafle & Associates, Chartered Accountants


    Presentation of Discontinued Operations
    Discontinued operations should be presented and disclosed as follows:
    • a one-line amount in the SOCI comprising the total of:
    the PAT of the discontinued operations and
    the post-tax gain or loss resulting from the measurement to fair value less
    costs to sell, or on the disposal of the assets or of the disposal group
    constituting the discontinued operation;
    • an analysis of the one-line item referred to immediately above (either
    in the notes or on the face of the statement of comprehensive
    income);
    • the net cash flows attributable to the operating, investment and
    financing activities of discontinued operations.

    Sujan Kafle & Associates, Chartered Accountants


    Disclosures

    Non Current Asset Separately disclosed from other assets in


    classified for Sale Balance Sheet

    Separately disclosed from other assets and


    Disposal Group
    Liabilities in Balance Sheet

    Sujan Kafle & Associates, Chartered Accountants


    Additional Disclosures
    • a presentation of the non-current asset (or disposal group);
    • a description of the facts and circumstances of the sale (terms,
    payment schedule, etc.);
    • the gain or loss recognized;
    • if a non-current asset ceases to be classified as being held for sale,
    disclosure is required of a description of the facts and circumstances
    leading to the decision on results of the current and previous periods.

    Sujan Kafle & Associates, Chartered Accountants


    Thank You ! Thou
    ghts Id e a s

    Sujan Kafle & Associates, Chartered Accountants

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