Assets held for sale

Generally 1 mark for each matter considered/evidence point explained:

Matters:

– Assets held for sale are material (calculation)
– Amount written off is not material (calculation)
– Conditions required to classify assets as held for sale (up to 2 marks)
– Re-measurement at classification appears correct
– Further impairment review may be needed at year end
– Depreciation should not be charged after reclassification
– Disclosure in notes to financial statements

Evidence:

– Board minute at which the disposal of the properties was agreed by management
– Details of the active programme in place to locate a buyer
– A copy of any minutes of meetings held with prospective purchasers of any of the properties
– Written representation from management that the assets will be sold before October 2013
– Subsequent events review
– Confirm depreciation ceased on reclassification
– Details of any impairment review conducted by management

Maximum marks 8