NCA HFS (FRS 5)

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  1. definition....
    • if its CV will be recovered through a sale transaction rather than use, eg. purchase exclusively for disposal
    • should not classify NCA that is to be abandoned (used to the end or closed) as held for sale
  2. initial recognition criteria
    • 1. Available for immediate sale
    • 2. sale must be highly probable
  3. initial recognition criteria-"Available for immediate sale"
    • Meet:
    • 1. time taken is usual and customary for sales of such assets
    • 2. Delay affected by regulatory approval/market conditions that is beyond control, but entity has reduced price/take necessary commitment
    • Not meet:
    • 1. delay imposed by entity
  4. initial recognition criteria-sale must be highly probable - criteria
    • 1. management committed to sell the asset
    • 2. active program to locate a buyer
    • 3. sale at reasonable price compared to FV
    • 4. take place within one year, except if the delay is beyond the entity's control and sufficient evidence that the entity remains committed
    • 5. unlikely to change the plan
    • 6. approval by shareholders
  5. classification after reporting period but before authorization of FS - disclosure requirement
    • disclose
    • but amendment to classification
  6. initial and subsequent measurement
    • initial: lower of CV or FVLCS, imp
    • subsequent: imp for subsequent write down; recognise a gain in PL for any increase in FVLCS, but not in excess of the cumulative impairment loss that has been recognised
  7. cost to sell - excludes..
    • finance cost
    • income tax expense
  8. Dispose asset not within scope in a disposal group - treatment
    Those assets outside the scope of HKFRS 5 shall be remeasured in accordance with the applicable HKFRS before the FVLCS of the disposal group is remeasured

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Author:
yhliuaa
ID:
324359
Filename:
NCA HFS (FRS 5)
Updated:
2016-10-11 16:13:35
Tags:
NCA HFS FRS
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NCA HFS (FRS 5)
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