Does this building meet the requirements of paragraph 11 of IFRS 5 Non-current Assets held for sale (NCAHFS)?
Understand the Problem
The question is asking whether a specific building meets the criteria set out in paragraph 11 of IFRS 5 concerning non-current assets held for sale. It discusses the current status of the building's construction and potential transfer to a buyer.
Answer
Yes, if it meets the criteria for immediate sale and high probability of sale within a year.
The building meets the requirements of paragraph 11 of IFRS 5 if it is available for immediate sale and its sale is highly probable within a year.
Answer for screen readers
The building meets the requirements of paragraph 11 of IFRS 5 if it is available for immediate sale and its sale is highly probable within a year.
More Information
Paragraph 11 specifies conditions like the asset must be available for immediate sale in its present condition, and its sale must be highly probable, meaning there should be a plan to sell it within a year and it should be actively marketed.
Tips
Common mistakes include not ensuring the asset is actively marketed or not confirming that the sale is highly probable.
Sources
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