Below are the a few substantive procedures to consider when auditing NCA's (Non current assets). more than 1 year). motor vehicles, fixtures and fittings. (b) The average unit of PPE is normally of a relatively larger rupee value. Test. Source: freepik.com. IFRS 5: Non-current assets held-for-sale and discontinued operations G. Holt, Accounting and Business, Vol. List of Non-Current Assets (Examples) #1 – Property Plan and Equipment. Non-current assets held for sale Non-current assets or disposal groups classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. Cash and Cash Equivalents. Dr Non-current asset X. Cr Bank/Cash/Payables X. IFRS 5 Non-current Assets held for Sale and Discontinued Operations Accounting summary 2017 - 04 1 Objective The objective of this IFRS is to specify the accounting for assets held for sale, and the presentation and disclosure of discontinued operations. The audit practitioner would always aim at obtaining sufficient appropriate evidence to provide a reasonable basis for expressing a conclusion in an assurance report about Non-current Assets Held for Sale. satsuki_eshbaugh . Since the Inventory is meant to be realised by way of sale or consumption in the course of generating sales, it is treated as a current asset. Spell. Current Assets. Non-current Assets Held for Sale and Discontinued Operations Objective 1 The objective of this Standard is to specify the accounting for assets held for sale, and the presentation and disclosure of discontinued operations. A few related points to consider when you are evaluating held for sale. If assets are classified based on their … PLAY. Property, Plant, and Equipment (PP&E) are long-lived non-current assets used in the production or sale of other assets.. 8, September 2007 Article discussing the requirements of IFRS 5 which deals with the accounting for non-current assets held-for-sale, and the presentation and disclosure of discontinued operations. slower than current assets which are held for sale. Assets held-for-sale are an exception to the fair value measurement principle used in most acquisition accounting, because they are measured at fair value less costs to sell. However, context can help us understand what terms imply in a given situation. First, lets deal with tangible NCA's. Classification of Assets: Physical Existence. This is the value obtained from the sale of the asset after deducting any associated costs such as income taxes and disposition costs. Examples of non-current or fixed assets include: Land; Building; Machinery; Equipment; Patents; Trademarks . • Non-current assets classified as held for sale and discontinued operations Comparative information is prepared and presented on the basis of SFRS. To summarise, the standard presents the classification criteria in two tests namely – Business Model test and SPPI test on the basis of which an asset can be measured at amortised cost, or FVOCI or FVTPL. 3.9. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated so that its depreciable amount is allocated on a systematic basis over its useful life. The net realizable value is the value that counts when calculating the total net worth of the company. Flashcards. Non-current Assets Held for Sale and Discontinued Operations This compiled Standard applies to annual reporting periods beginning on or after 1 July 2012 but before 1 January 2013. Classification of non-current assets (or disposal groups) as held for sale or as held for distribution to owners. It incorporates relevant amendments made up to and including 5 September 2011. Noncurrent assets are a company's long-term investments, which are not easily converted to cash or are not expected to become cash within a year. Here's a list of asset accounts under each line item, and classified into current and non-current: Current Assets. Non-current assets are assets that cannot be easily and readily converted into cash and cash equivalents. (a) General. The standard also mentions the criteria of re classification as discussed above. Normally, PPE are carried over from year to year. But to the lender, it’s money the borrower has to repay. Learn. 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