IFRS 5

In this lesson

1. 0:00 IFRS 5: Non-current assets and discontinued operations
2. 0:20 What makes a discontinued operation
3. 1:01 Classification criteria for assets held for sale
4. 2:01 Impairment and measurement of held-for-sale assets
5. 2:54 Depreciation and subsequent revaluation rules
6. 3:50 Presenting discontinued operations in financial statements
7. 4:28 Non-adjusting events and post-year-end disposals

About this lesson

This is essential for Financial Reporting (FR) and Strategic Business Reporting (SBR) papers, as it directly impacts how you present non-current assets and operational changes in the statement of financial position and profit or loss. You'll discover what qualifies as a discontinued operation—a significant component of the business disposed of or held for sale, such as a product line, geographical market, or subsidiary acquired for resale. The video walks you through the strict criteria assets must meet to be classified as held for sale, including immediate availability for sale, active buyer search, and high probability of disposal within 12 months. The lesson covers the three-step accounting process: first, checking for impairment before classification; second, writing the asset down to the lower of carrying amount and fair value less costs to sell; and third, ceasing depreciation once classified as held for sale. You'll also learn how to handle subsequent fair value changes and the specific presentation requirements—showing discontinued operations as a single line item on the profit or loss statement, broken down by revenue, expenses, and tax in the notes. Finally, you'll understand how to treat post-year-end decisions to dispose of operations as non-adjusting events, disclosed in the notes without changing your financial statements. This knowledge ensures you meet exam requirements and present financial information accurately under IFRS standards.

Duration: 5m