NONCURRENT ASSET HELD FOR SALE A noncurrent asset or disposal group is classified as held for sale if its carrying

amount will be recovered principally through a sale transaction rather than through continuing use. CONDITIONS FOR CLASSIFICATION AS HELD FOR SALE 1. The asset is available for immediate sale in its present condition 2. Sale is highly probable Committed Active program Expected to be a completed sale w/in one year Sale price that is reasonable Unlikely to be changed or withdrawn MEASUREMENT OF ASSET HELD FOR SALE the LOWER between: Carrying Amount FV less cost of disposal Excluding finance cost and income tax expense Shall not be depreciated WRITEDOWN TO FAIR VALUE LESS COST OF DISPOSAL CA > FV Cost of disposal, treated as IMPAIRMENT LOSS If the asset is a disposal group, the impairment is allocated: 1. Good will 2. Pro rata based on CA Equipment held for sale Accumulated depreciation Equipment Impairment loss Equipment held for sale Cash Loss on sale of equipment xx xx xx xx xx xx xx

CHANGE IN CLASSIFICATION An entity shall measure the noncurrent asset that ceases to be classified as held for sale at the lower of: 1. CA as if it is not held for sale 2. Recoverable amount @ date of decision not to sell

DISCONTINUED OPERATION A component of an entity that either has been disposed of or is classified as held for sale and: 1. Represents a separate major linen of business Or geographical area of operations 2. Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations 3. Is a subsidiary acquired exclusively with a view to resale. TIMING OF REPORTING When the entity has actually disposed of the operation. When the operation meets the criteria to be classified as held for sale. DISCLOSURES ABOUT DISCONTINUED OPERATIONS a) Revenue, expenses and income/loss and related income tax b) Any impairment loss c) Any gain/loss on actual disposal d) Termination costs ABANDONED DISCONTINUED OPERATION @ The date on w/c they are actually abandoned

\ ACCOUNTING CHANGES PAS 8: Change in accounting estimate Change in accounting policy CHANGE IN ACCOUNTING ESTIMATE An adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset that results from the assessment of the present status and expected future benefit and obligation associated with the asset and liability Not a correction of an error Normal recurring correction or adjustment of an asset or liability which is the natural result of the use of an estimate Reasonable estimate Change in measurement basis change in acctg estimate EXAMPLES OF ACCOUNTING ESTIMATE a) Bad debts b) Inventory obsolescence c) Useful life, residual value, and expected pattern of consumption of benefit of depreciable asset d) Warranty cost e) Fair value of financial assets and financial liabilities HOW TO REPORT CHANGE IN ACCOUNTING ESTIMATE

SUBSEQUENT INCREASE IN FAIR VALUE Recognize a gain but not in excess of any impairment loss previously recognized Equipment held for sale Accumulated depreciation Equipment Cash Equipment held for sale Gain on sale of equipment xx xx xx xx xx xx

REVALUED ASSET CLASSIFIED AS HELD FOR SALE When an entity adopts the revaluation model for the measurement of assets, any asset classified as held for sale should be revalued to fair value immediately prior to the classification as held for sale. FV CA @ that date

ABANDONED NONCURRENT ASSET An entity shall not classify as held for sale a noncurrent asset or disposal group that is to be abandoned.