ICAEW.com works better with JavaScript enabled.

IFRS 5 summary and timeline

A summary of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, including information on current proposals and a timeline of past amendments, announcements, exposure drafts and consultations.

Summary

Assets or disposal groups classified as held for sale must be measured at the lower of carrying amount and fair value less costs to sell. Any resulting impairment loss is recognised in profit or loss. Once classified as held for sale, these assets are not depreciated and are disclosed separately on the face of the statement of financial position (balance sheet) within current assets.

Discontinued operations are those which have been disposed of or are held for sale. Their results are separately disclosed within the statement of comprehensive income (income statement) and their cash flows are separately disclosed within the statement of cash flows (cash flow statement).

Current proposals

The Board issued ED/2019/7 General Presentation and Disclosures in December 2019. The exposure draft proposes a new IFRS Standard to replace IAS 1. One of the proposed changes is to classify income and expenses in the statement of profit or loss as   operating, investing or financing. In accordance with this, references to ‘finance costs’ in IFRS 5 would be amended to be references to ‘interest expense on liabilities not arising from financing activities’.

Timeline

 
Date Update
25 September 2014 IASB issues Annual improvements – 2012-2014 cycle (Amendments to IFRS 5)
Effective for annual periods starting on or after 1 January 2016. Amendments relate to changes in methods of disposal.
16 April 2009 IASB issues Improvements to IFRSs 2009 (Amendments to IFRS 5)
Effective for annual periods beginning on or after 1 January 2010.
22 May 2008 IASB issues Improvements to IFRSs 2007 (Amendments to IFRS 5)
Effective for annual periods beginning on or after 1 July 2009.
31 March 2004 IASB issues IFRS 5
Effective for periods beginning on or after 1 January 2005.

Looking for the standard?

Practical guidance on this standard is now on our main IFRS 5 Non-current Assets Held for Sale and Discontinued Operations page, with links to eIFRS, the full text standard, eBooks and other resources.