Question

Assets are classified as “held for sale” when a number of criteria are met. Which of the following is not one of these criteria?

There is an authorized plan to sell.

There is an active program to find a buyer.

The sale is certain to occur within one year.

The asset is reasonably priced.

Answer 1

Please find the below explanation and “ Don’t forget to give a like! Thank you”

IFRS 5 deals non current assets held for sale and discontinued operations

For sale to be highly probable the following conditions must be met

• Authorized plan by management to sell the asset
• Active program to locate buyer is initiated
• Asset is reasonably priced
• Sale expected to happen with in one year from the date of classification
• The asset is available for immediately sale

Extension of one year is acceptable if the delay is caused by circumstances or events beyond

the control of the entity and there is sufficient evidence that the entity remains committed

to the plan to sell the asset.

Therefore, The sale is certain to occur with in one year is the criteria that is not met.

The answer is The sale is certain to occur with in one year.