Question

a non current asset that is held for sale but requires modification before the intended sale can take place, would not be considered for classification as'held for sale' until the modification is complete.

Answer 1

Answer:

True:

One of the conditions for an non current assets can be classiifed as held for sale when the company is committed to sell the asset and the asset is readily available for sale, otherwise it cannot be classified as an asset "held for sale" and also Non current assets are to be reported seperately in the statement of finacial position.

Now as per question, the asset is not in a "ready for sale" condition as it requires certain modificatio before the intended sale can take place, Therefore it would not be considered for classificationas "held or sale" until the modification is complete.

The treatment of the management is correct.

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