Accounting for a Business Disposal
If the carrying amount of a disposal group will be recovered primarily through a sale transaction rather than through continuing use, entity accounts for and discloses disposal.
"Keep only those things that speak to your heart. Then take the plunge and discard all the rest."
Do companies declutter? Yes, sometimes they need to.
Today's topic: IFRS 5 Non-current Assets Held for Sale and Discontinued Operations in 3 Steps plus some real world examples on the reasons behind the clean-ups in the business.
If you want to learn more, for example:
🔹 how to cope, if at the balance sheet date or at the date on which financial statements are authorized for issue one of the criteria for classification as held-for-sale still has not been met or,
🔹 how to treat situations where the sale transaction had to be dismissed, listen to this great podcast by Heather Horn:
https://shorturl.at/YsTtu
headline quote by Marie Kondō, The Life-Changing Magic of Tidying Up: The Japanese Art of Decluttering and Organizing.
