MC Question 22

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations prescribes the recognition criteria for non-current assets held for sale.

For an asset or a disposal group to be classified as held for sale, the sale must be highly probable.

Which of the following must apply for the sale to be considered highly probable?


A buyer must have been located


The asset must be marketed at a reasonable price


Management must be committed to a plan to sell the asset


The sale must be expected to take place within the next six months

A    2 and 3
B    3 and 4
C    1 and 4
D    1 and 2

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