Home › CA Final › financialreporting › fscasestudies › Under Ind AS 105, a non-current asset is classif…
Under Ind AS 105, a non-current asset is classified as HELD FOR SALE only when ALL of the following are met EXCEPT:
AThe asset has appreciated in market value relative to its carrying amount
BThe asset is available for immediate sale in its present condition
CManagement is committed to a plan to sell and an active programme to find a buyer has been initiated
DThe sale is expected to qualify for recognition as a completed sale within one year
Answer & Solution
Correct answer: A. The asset has appreciated in market value relative to its carrying amount
Para 6-8 of Ind AS 105 — held-for-sale requires: committed plan + active marketing + available for immediate sale + highly probable + completion within 12 months. Asset value appreciation is NOT a criterion (and is irrelevant — held-for-sale measurement is lower of carrying amount and FV less costs to sell, so appreciation isn't reflected in carrying amount until disposal).
Related questions
Under Ind AS 36, the IMPAIRMENT review for player registrations of a sports club is challeNeelanchal has a 10-year gas-purchase contract with Uttaranchal, advance paid for all 10 yMumbai Challengers Ltd. measures its STADIUMS under the REVALUATION MODEL. An airline offeVenus Ltd. owns 3 properties bought 1 April 20X1. Properties 1 and 2 (factories) are used Master Creator declared a ₹50,000 DIVIDEND after the reporting period for year ended 31 MaMaster Creator's PPE balance ₹85.37 lakh includes ₹15.48 lakh of LAND held FOR CAPITAL APPMaster Creator Pvt. Ltd. issued an 8% CONVERTIBLE LOAN of ₹64 lakh on 1 April 20X1, redeemMercury Ltd. sells goods to Mars Ltd. for ₹10 lakh, receivable in 3 installments of ₹3,33,