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CA Final Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations — practice questions

Explore 55 free Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations questions and exercises with answers

Showing questions 1–30 of 55.

A held for sale asset is valued at the lower of carrying amount and:Read the answer and worked solution →While a non-current asset is classified as held for sale, depreciation is:Read the answer and worked solution →Within what period of classification should a held for sale asset be expected to qualify as a completed sale?Read the answer and worked solution →How is an asset to be abandoned treated under Ind AS 105?Read the answer and worked solution →Why can an asset to be abandoned not be classified as held for sale?Read the answer and worked solution →An asset temporarily taken out of use is accounted for as:Read the answer and worked solution →A disposal group is a group of assets disposed of together in what manner?Read the answer and worked solution →Which items are excluded from the costs to sell of an asset?Read the answer and worked solution →Recoverable amount is the higher of fair value less costs to sell and what?Read the answer and worked solution →Assets and liabilities of a held for sale disposal group are:Read the answer and worked solution →Prior-period balance sheets when an asset turns held for sale are:Read the answer and worked solution →A discontinued operation is a component either disposed of or:Read the answer and worked solution →A component of an entity comprises operations and cash flows that are:Read the answer and worked solution →A subsidiary acquired only for resale and held for sale is a:Read the answer and worked solution →The single profit and loss amount for discontinued operations is measured:Read the answer and worked solution →Net cash flows of discontinued operations are disclosed for:Read the answer and worked solution →Remeasurement gain on a held for sale asset outside discontinued operations goes to:Read the answer and worked solution →A later rise in fair value less costs to sell is a gain up to:Read the answer and worked solution →Carrying Rs 5,00,000; fair value Rs 4,80,000; selling costs Rs 15,000. Held for sale measurement?Read the answer and worked solution →Rs 1,50,000 impairment booked earlier; value rises Rs 2,50,000. Maximum gain?Read the answer and worked solution →For an asset to be held for distribution to owners, actions to complete the distribution should be expected to finish within:Read the answer and worked solution →If a sale is expected to occur beyond one year, the costs to sell are measured at:Read the answer and worked solution →Unwinding of discounted costs to sell is presented as:Read the answer and worked solution →Asset held for sale from a business combination is measured at:Read the answer and worked solution →An asset bought only for resale may be classed held for sale if other unmet criteria are met usually within:Read the answer and worked solution →Criteria met after year end, before approval of accounts. The asset is:Read the answer and worked solution →An asset to be sold in a distant future may be held for sale:Read the answer and worked solution →An asset exchange counts as a sale when it has:Read the answer and worked solution →On losing control, all subsidiary items are held for sale:Read the answer and worked solution →A sale taking longer than one year can still be held for sale if the delay is:Read the answer and worked solution →

Worked practice questions

A held for sale asset is valued at the lower of carrying amount and:

  1. Fair value less costs to sell
  2. Replacement cost less wear
  3. Original cost less wear
  4. Value in use of asset
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Correct answer: A. Fair value less costs to sell

Paragraph 15 sets the measurement base for held for sale items as the lower of carrying amount and fair value less costs to sell.

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While a non-current asset is classified as held for sale, depreciation is:

  1. Stopped from classification date
  2. Charged on buildings alone
  3. Charged at half the usual rate
  4. Continued at the earlier rate
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Correct answer: A. Stopped from classification date

Recovery is through sale rather than use, so depreciation and amortisation stop once the asset is classified as held for sale.

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Within what period of classification should a held for sale asset be expected to qualify as a completed sale?

  1. One year
  2. Three months
  3. Six months
  4. Two years
Show answer and solution

Correct answer: A. One year

The sale is expected to qualify for recognition as completed within one year of classification, subject to the paragraph 9 extension.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property