Sample exam papers for recent DipIFR exam sessions are listed below. The price of the building has been fixed at $4m and a surveyor has valued the building based on market prices at $3.6m. In general terms, assets (or disposal groups) held for sale are not depreciated, are measured at the lower of carrying amount and fair value less costs to sell, and are presented separately in the statement of financial position. IFRS 5 does not require the existence of a binding sales agreement in order to classify a non-current asset as held for sale but only a high probability of its … Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Walley Corp for its Plant division? 0 Essay(s) Pending (Possible Point(s): 0). Inventory (IAS 2) Chapter 10. An entity classifies a non-current asset as held-for-sale if its carrying amount will be recovered mainly through selling the asset rather than through usage. In February 20X4, Walley Corp decided to sell it’s entire Plant division. ACCA Financial Reporting (FR) Chapter 8 - Non-current assets held for sale and discontinued operations (IFRS 5) Questions - Free ACCA … It introduces a classification for non-current assets which is called ‘held-for-sale’. ACCA CIMA CPD FIA (ACCA) AAT. IFRS 5 outlines how to account for non-current assets held for sale (or for distribution to owners). Test yourself with questions about B10abcd. IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations Quiz. D3a. according to IFRS 5 Non Current Assets Held for Sale, assets held for the in the … In 20X4 Plant’s net losses were €350,000 and €20,000 in 20X5 up until the date of sale. Financial instruments (IFRS 9) Chapter 12. Thank for trying this quiz. For ACCA members whose qualifications are already based on IFRS, the Cert IFR is an opportunity to update their IFRS … We’d love to have you as a member; simply click here to find out more. It is possible that the sale may not be completed within one year, but the delay effectively must be caused by events beyond the entity’s control and the entity must still be committed to selling the asset. ACCA BT F1 MA F2 FA F3 LW F4 Eng PM F5 TX F6 UK FR F7 AA F8 FM F9 SBL SBR INT SBR UK AFM P4 APM P5 … Thus, goodwill will be reduced to zero. Please note the following: From December 2019, the DipIFR exam changed in format to 4 x 25 marks questions. Results are being recorded. In this article, Steve Collings looks at how an entity should account for non-current assets which have been classified as held for sale. Additionally, it intends to shut down one-half of its manufacturing base. Module 5 - Topic Areas: This means that the sale time is difficult to determine and it may take longer than one year to sell the disposal group. Quiz complete. Register; Log In; CPD IFRS 5 - Non-current Assets HFS and Discontinued Ops ... IFRS 5 — Non-current Assets for Sale or Discontinued 4 Steps ... playlist_add_check Quiz - Identification and Presentation 5 Questions ondemand_video Discontinued Operations 13m 35s playlist_add_check Quiz - Discontinued Operations 5 … Any adjustment to the value should be shown in income from continuing operations for the period. Enrich your profile & get ready to certify your skills Now! FREE Courses Blog. IFRS 5 Non Current Assets Held for Sale. The property, plant and equipment and inventory were stated at deemed cost on moving to IFRS. Accounting policies, changes in accounting estimate and errors (IAS 8) Chapter 10. To find out more, see our Cookies Policy … Assets Held for Sale. If this information is presented on the face of the income statement, then the information should be separately disclosed from that of continuing operations. If you fail the test, please re-read the article before attempting the questions again User account menu. The classification also applies to disposal groups, which are a group of assets and possibly some liabilities which an entity intends to dispose of in a single transaction. Are … IFRS 5 deals with the accounting for non-current assets held-for-sale, and the presentation and disclosure of discontinued operations. Acowtancy. Which of the following must apply for the sale to be considered highly probable? Terms & Conditions Close. ification in Financial Accounting using International Financial Reporting Standards (IFRS/IAS). ACCA CIMA CAT DipIFR Search. IFRS 5 Non-current Assets Held for Sale IFRS 5 Non-current Assets Held for Sale and Discontinued Operations says that a discontinued operation is a component of an entity that has been sold, or which is classified as held for sale, and which is: a separate line of business (either in terms of operations or location) part of Acowtancy. IFRS 5 - Discontinued operations - ACCA Financial Reporting (FR) IFRS 5 - Discontinued operations - ACCA Financial Reporting (FR) Skip to primary navigation; ... the discontinued operations iwas adjusted for in year 2016 though the question stated that the business wound up in March 2017. Please note the following: All question papers and solutions are the copyright of ACCA and can only be used for classroom and … In the balance sheet, the major classes of assets and liabilities classified as held-for-sale should be separately disclosed on the face of the balance sheet or in the notes. A discontinued operation is a part of an entity that has either been disposed of or is classified as held-for-sale, and: The total of the post-tax profit or loss of the discontinued operation, and the post-tax gain or loss recognised on the measurement to fair value less cost to sell (or on the disposal), should be presented as a single figure on the face of the income statement. Non-current assets held-for-sale and assets of disposal groups must be disclosed separately from other assets in the balance sheet. IFRS 5 requires an entity to classify a non-current asset as held for sale if its carrying amount will be recovered principally through sale rather than through continuing use. 2 2. Log In Sign Up. Additionally, the entity is planning to sell part of its business and has actively marketed the business at a fair price but, before the business can be sold, government approval is required and any sale requires government approval. ACCA Diploma in IFRS DipIFR December 2015 Exam - Questions & Answers Standard: IFRS 5 – Non-Current Assets Held for Sale and Discontinued Operations Page 1 Question (4- B) You are the financial controller of Omega, a listed company which prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS… Show how the disposal group would be accounted for in the financial statements for the year ended 31 December 2006. After the re-measurement, the entity will recognise an impairment loss of $16m on re-measurement to the lower of carrying amount and fair value less cost to sell. ACCA DipIFR Sample Question Papers of both June and … IFRS 5 Non Current Assets Held for Sale and Discontinued operations give us guidelines that how entities should account for the non-current asset held for sale and discontinued operations. Press question mark to learn the rest of the keyboard shortcuts. Non-current assets or disposal groups classified as held-for-sale should not be depreciated. Thus, in this case, there would be separate disclosure of the disposal group as follows. AAA P7 INT. Any subsequent increases in fair value less cost to sell of the asset can be recognised in profit and loss to the extent that it is not in excess of the cumulative impairment loss that has been recognised. Assets classified as __________ in accordance with IAS 1 Presentation of Financial Statements _________ they meet the criteria to be classified as held for sale in accordance with IFRS 5. This allows management to apply judgment to determine the separate performance obligations that best reflect the economic substance of a transaction. Hence you can not start it again. IFRS is Easy brings to you free ICAN and ACCA Pdf examination questions and solutions. Entities often acquire non-current assets exclusively with a view to disposal. This is my 2nd attempt and i really wanna get … Sample exam papers for recent DipIFR exam sessions are listed below. IFRS 15 provides indicators rather than criteria to determine when a good or service is distinct within the context of the contract. Assets Held for Sale 11 / 41. These papers featured in past exam sessions and should therefore be used as a guide only. IFRS 5 requires detailed disclosure of revenue, expenses, pre-tax profit or loss, and the related income tax expense either in the notes or on the face of the income statement. A 2 and 3 This loss is allocated to goodwill in accordance with IAS 36. IFRS, being cultural artefacts, are transformed to meet local ‘consumer demand’ (user needs) e.g. The entity will continue to use the building until another building has been found with equivalent facilities, and in a suitable location for the office staff, who will not be relocated until the new building has been found. Also, the directors have only tentatively started looking for a buyer which may indicate that the entity is not committed to the sale. An entity has agreed in a directors’ meeting to sell a building, and has tentatively started looking for a buyer for the building. These papers featured in past exam sessions and should therefore be used as a guide only. If the sale is expected to occur in over a year’s time, the entity should measure the cost to sell at its present value, and any increase due to the unwinding of the discount is charged to profit or loss. The maxim “Practice Makes Perfect” cannot be overemphasized. IFRS 5 Non-current Assets Held for Sale IFRS 5 Non-current Assets Held for Sale and Discontinued Operations says that a discontinued operation is a component of an entity that has been sold, or which is classified as held for sale, and which is: a separate line of business (either in terms of operations or location) part … E-mail: info@charterededucation.com. An entity has stopped using certain plants because of a downturn in orders. Please visit our global website instead, Can't find your location listed? If the asset is temporarily not being used, it is not deemed to be abandoned. Free sign up Sign In. Posted by 5 days ago. Please visit our global website instead. An entity has agreed in a directors’ meeting to sell a building, and has tentatively started looking for a buyer for the building. ACCA CIMA CAT DipIFR Search. Under IFRS, property, plant and equipment would be stated at $26m, and inventory stated at $18m. Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. Previous Next. The building will not be classified as held-for-sale as it is not available for immediate sale because, until new premises have been found, the office staff will remain in the existing building. It is unlikely that the entity will sell the building for that price. You must sign in or sign up to start the quiz. Contact information for your local office, Virtual classroom support for learning partners, Financial assets (profit of $4m recognised in equity), Amounts recognised directly in equity relating to non-current assets held-for-sale, Liabilities directory associated with non-, the assets must be available for immediate sale in their present condition and its sale must be highly probable, the asset must be currently marketed actively at a price that is reasonable in relation to its current fair value, the sale should be completed, or expected to be so, within a year from the date of the classification, and. ACCA BT F1 MA F2 FA F3 LW F4 Eng PM F5 TX F6 UK FR F7 AA F8 FM F9 SBL SBR INT SBR UK AFM P4 APM P5 ATX P6 UK AAA P7 INT AAA P7 UK. In this case, it should be valued at the lower of the carrying amount before the asset or disposal group was classified as held-for-sale (as adjusted for any subsequent depreciation, amortisation or re-valuation), and its recoverable amount at the date of the decision not to sell. The conditions for a non-current asset or disposal group to be classified as held-for-sale are as follows: For the sale to be highly probable, management must be committed to selling the asset and must be actively looking for a buyer. IFRS 5 requires that immediately before the initial classification of the disposal group as held-for-sale, the carrying amounts of the disposal group be measured in accordance with applicable IFRS, and any profit or loss dealt with under that IFRS. You have already completed the quiz before. Take practice test on IFRS Basics & boost your chances to excel. When non-current assets or disposal groups are classified as held-for-sale, they are measured at the lower of the carrying amount and fair value less cost to sell. Question 1 of 2 Summary Skip. However, a disposal group that is to be abandoned may meet the definition of a discontinued activity. Free sign up Sign In. Chartered Education IFRS MCQs have more than 1,100 questions like these covering all subjects. The global body for professional accountants, Can't find your location/region listed? Abandonment means that the non-current asset has been used to the end of its economic life or the disposal group will be closed rather than sold. It is accredited by the ACCA (Association of Chartered Certified Accountants) and is aimed at ... past exam questions to develop examination skills. The entity will continue to use the building until another building has been found with equivalent facilities, and in a suitable location for the office staff, who will not be rel… Phone: +353 (0)1 4433 400 Acowtancy. It conducts DipIFR exam in every June and December months. SBR predictions. Chapter 8. Agriculture (IAS 41) Chapter 11. Retrospective classification as a discontinued operation where the criteria are met after the balance sheet date is prohibited by IFRS 5. Under which circumstances shall an entity classify a non-current asset as held for sale? represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of separate major lines of business or geographical area of operations, or. Sample exam papers for recent DipIFR exam sessions are listed below Ifrs 5 exam questions and answers pdf. Articles, Clarence Street, Dun Laoghaire, Co. Dublin, Ireland D3a. There are several other discloses required, including a description of the non-current assets of a disposal group, a description of the facts and circumstances of the sale, and the expected manner and timing of that disposal. the subsidiary was acquired exclusively with a view to resale. The fair value less costs to sell of the disposal group is $47m. ACCA CIMA CAT DipIFR Search. The liabilities must also be disclosed separately in the balance sheet. This site uses cookies. These goods can include inventories, property, plant and equipment, intangible assets, and other non-financial assets. Earned Point(s): 0 of 0, (0) SBR predictions. Question 1 of 2 Summary Skip. ACCA BT F1 MA F2 FA F3 LW F4 Eng PM F5 TX F6 UK FR F7 AA F8 FM F9 SBL SBR INT SBR UK AFM P4 APM P5 … The units to be closed constitute a major segment of its business and will close in the current financial year. ACCA conducts Diploma in IFRS Exam twice in a year. The disposal group, however, would be classified as held-for-sale because the delay is caused by events or circumstances beyond the entity’s control, and there is evidence that the entity is committed to selling the disposal group. Evaluation and review. Free IFRS 2 multiple choice quiz. If criteria for an asset to be classified as held-for-sale are no longer met, then the asset or disposal group ceases to be held-for-sale. Identify the contracts Non-current assets held for sale and discontinued operations (IFRS 5) Chapter 9. B10a. Just before the initial classification of a non-current asset (disposal group) as held-for-sale, it should be measured in accordance with IFRS. The sale was completed in January 20X5 and resulted in a gain on disposal of €500,000. The equipment will not be treated as abandoned as it will subsequently be brought back into usage, and the manufacturing units will be treated as discontinued operations. The loss will be charged against profit or loss. Do well to download the Financial Reporting materials here. The Plant division was a major part of Walley Corp’s business and the sale will result in a strategic change in direction for the company. I expected that we maintained … Hi guys, any predictions for possible standards and the consolidation question which would be coming this December? An introduction to ACCA SBR (INT) E1ef. IFRS 5 provides unconditional requirement that the sale of the non-current asset held for sale should be expected to qualify for recognition as a completed sale within one year from the date of classification. Revenue Recognition - IFRS 15 - 5 steps from past papers in ACCA FR (F7). they may be used for a selective number of entities, or every entity (as happened in NZ from 2007: including a charity, sports club, the national Government, or a local city council). Free Download ACCA DipIFR Question Papers for June 2018. Leases (IFRS 16) Chapter 13. It is maintaining the plant as the entity hopes that orders will pick up in future. There are two notable exceptions: shares issued in a business combination, which are dealt with under IFRS 3, Business Combinations; and contracts for the purchase of goods that are within the scope … FREE Courses Blog. If an entity is winding up operations or ‘abandoning’ assets, then these assets do not meet the definition of held-for-sale. As regards the presentation in the cash flow statement, the net cash flows attributable to the operating, investing and financing activities of the discontinued operation should be separately shown on the face of the cash flow statement or disclosed in the notes. Quiz: IFRS 5 Non-current assets held for sale and discontinued operations (Conceptual) The quiz tests your theoretical and conceptual understanding of accounting for Non-current assets held for sale and discontinued operations (International Financial Reporting Standard 5). Assume that the disposal group qualifies as held-for-sale. Notes Video Quiz Paper exam. 5 steps that need to be followed in revenue recognition: 1. Revenue Recognition - IFRS 15 - introduction. The price of the building has been fixed at $4m and a surveyor has valued the building based on market prices at $3.6m. Revenue Recognition - IFRS 15 - introduction with a quick quiz in ACCA FR (F7). Free IFRS 5 multiple choice quiz. FREE Courses Blog. Such a non-current asset will be classified as held-for-sale at the date of the acquisition only if it is anticipated that it will be sold within the one-year period, and it is highly probable that the held-for-sale criteria will be met within a short period (normally three months) of the acquisition date. This course also benefits ACCA members who gained their qualification prior to the introduction of IFRS. Chartered Education IFRS MCQs have more than 1,100 questions like these covering all subjects. For an asset or a disposal group to be classified as held for sale, the sale must be highly probable. Additionally, the price being asked for the building is above the market price, and is not reasonable compared to that price. The reduction in the carrying amount of property, plant and equipment will be dealt with in accordance with IAS 16, and that of the inventory in accordance with IAS 2. the actions required to complete the planned sale will have been made, and it is unlikely that the plan will be significantly changed or withdrawn. If you’d like to keep improving your knowledge of IFRS, sign up for a subscription where you can access all our questions. IFRS 8 Segmental Reporting - Introduction as documented in theACCA SBR (INT) textbook. IFRS 5 – Non-Current Assets Held for Sale and Discontinued Operations This article is relevant for ACCA F7 and P2 plus AAT and CIMA papers. IFRS 5 Non-current Assets Held for Sale and Discontinued Operations prescribes the recognition criteria for non-current assets held for sale. If the criteria for classifying a non-current asset as held-for-sale occur after the balance sheet date, then the non-current asset should not be shown as held-for-sale but disclosure of the fact should be made. General IFRS Discussion (129) IFRS for SMEs (5) IFRS 1 - First-time Adoption of International Financial Standards (15) IFRS 2 - Share-based Payment (9) IFRS 3 - Business Combinations (10) IFRS 4 - Insurance Contracts (6) IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations (3) IFRS 6 - Exploration for and … Member ; simply click here to find out more entity hopes that orders will pick up in.! Brings to you Free ICAN and ACCA Pdf examination questions and solutions must sign in or sign up to the! 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