IASB January 2008
Disclosures required for non-current assets (or disposal groups) classified as held for sale or discontinued operations
The Board identified a need to clarify the disclosure requirements for non-current assets (or disposal groups) classified as held for sale or discontinued operations in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The Board tentatively decided to add a paragraph in the scope section of IFRS 5 to clarify that:
- IFRS 5 specifies disclosures required in respect of non-current assets (or disposal groups) classified as held for sale or discontinued operations;
- disclosures in other IFRSs do not apply to such assets (or disposal groups) unless those IFRSs specifically require disclosures in respect of non-current assets (or disposal groups) classified as held for sale or discontinued operations;
- and additional disclosures about such assets (or disposal groups) may be necessary to comply with the general requirements of IAS 1 Presentation of Financial Statements.
The Board noted that this clarification would imply that any information relating to the assets and liabilities within a disposal group would be pulled out from the general notes and disclosed in a single note.
The Board also noted that when the criteria for classification as held for sale or discontinued operations are met, the assets and liabilities within a disposal group are separately identifiable from the other assets and liabilities. This is because, for the purpose of the planned sale, the entity has identified which of assets and liabilities will be disposed of and which will be retained.
The Board also noted that when a disposal group includes assets and liabilities that are not within the scope of the measurement requirements of IFRS 5, disclosures about measurement of these assets and liabilities are normally provided in the other notes to the financial statements. Such disclosures do not need to be repeated, unless doing so better enables users of the financial statements to evaluate the financial effects of discontinued operations and disposals of non-current assets (or disposal groups).
The Board asked the staff to prepare an amendment to IFRS 5 that reflects its tentative decisions.