RULES IN FAR

NON-CURRENT ASSETS HELD FOR SALE

† HFS and disposal groups are INITIALLY and SUBSEQUENTLY measured at the lower of CARRYING AMOUNT and
FAIR VALUE LESS COST TO SELL
† Non-current Assets within PFRS 5 subject to conversion as held for sale:
PPE
Investment Property measured @ COST MODEL
Investment in Associate, subsidiary, or joint venture
Intangible Assets
† Classification as Held for Sale or Held for Distribution to Owners – if its CARRYING AMOUNT will be recovered
principally through a SALE TRANSACTION rather than through continuing use. Sale includes EXCHANGES (of
non-current assets for other non-current assets) that have commercial substance.
† Conditions for classification:
1. Available for immediate sale in its present condition subject only to term that are usual and customary
2. Sale is highly probable and must be evidenced by the existence of all of the following
-entity is committed to sell the asset
-entity is actively locating a buyer
-sale price is reasonable in relation to its current fair value
-sale is expected to be completed within 1 year from the date of classification (or 1 year from date of reporting if it is also the date of
classification, same lang)
Exemption: 1. The delay is caused events beyond the entity’s control
2. there is a sufficient evidence that the entity remains committed on selling the asset or disposal group
-it is unlikely that the plan to sell will be withdrawn
† Noncurrent assets that meet the conditions as HFS only AFTER the reporting period is not classified as HFS in
the current period’s FS. It is treated as a NON-ADJUSTING EVENT after the reporting period (Note: Same treatment
components of an entity that meets the criteria for qualification as discontinued operation)
† Noncurrent assets (or disposal groups) declared as property dividends are classified as Held for Distribution to
Owners when they are available for immediate distribution in their present condition and the distribution is
highly probable
† Noncurrent assets or disposal groups that is to be abandoned is not classified as HFS because its carrying
amount will be recovered through continuing use rather than principally through sale. Noncurrent assets that
are temporary taken out of use are not treated as if they have been abandoned.
† HFS assets are not depreciated or amortized while they are classified as held for sale. However, interest and
other related expenses attributable to financial instruments included in a disposal group are continued to be
recognized
† An asset that ceases to be classified as HFS is measured at the LOWER of:
-Carrying amount before it was classified as HFS adjusted for depreciation, amortization or revaluation that would have been recognized
had the asset not been classified as HFS
-Recoverable amount on the date of subsequent decision not to sell
† An asset or disposal group ceases to be classified as HFS, the previous FS are NOT RESTATED, but accounted
prospectively
† Noncurrent assets HFS is presented on statement of financial position as current assets
† Impairment loss (reversal) is presented as part of the Continuing Operation in the statement of profit and loss
and other comprehensive income
† Gain on impairment reversal of an asset HFS is recognized only to the extent of cumulative impairment losses
previously recognized

DISPOSAL GROUP
† disposal groups are INITIALLY and SUBSEQUENTLY measured at the lower of CARRYING AMOUNT and FAIR
VALUE LESS COST TO SELL
† On subsequent measurement, the carrying amount of any asset/liability not within PFRS 5 but are included in
a disposal group classified as HFS shall be remeasured in accordance with their applicable PFRS before the
FVLCS of the disposal group is remeasured
† A disposal group may qualify as discontinued operation if it is a component of an entity and meets the other
requirements under PFRS 5
† Impairment Loss for a disposal group reduces the carrying amount of the noncurrent assets in the group that
are within the scope of PFRS 5 in the following order:
-any goodwill allocated to the group
-other asset (within PAS 36) of the group pro rata on the basis of the carrying amount for each asset in the unit (group of units)
 Reduction in carrying amounts are treated as impairment losses on individual assets
 Reversal of impairment loss is allocated to the assets of the group EXCEPT for GOODWILL, pro rata on the basis of the
carrying amounts of those assets
† There might be an impairment loss of disposal group before classifying as HFS (also included in reversal of
impairment loss), and another impairment loss after classifying as HFS. Only those impairment losses after
classifying are treated and allocated to goodwill (if any) and the excess to other assets (within PAS 36) on a pro
rata basis per carrying amounts of each assets
† Disposal group HFS assets and liabilities are presented SEPARATELY in the statement of financial position.
Offsetting is prohibited
† Cessation of classification as HFS of disposal group that are not components of an entity does not results to
restatement, it is accounted prospectively. Any loss in converting HFS of disposal group into PPE is referred as
LOSS ON RECLASSIFICATION.
† Net cash flows relating to the operating, investing and financing activities of a disposal group shall be
presented separately in the statement of cash flows with additional disclosures either in the face of the
statement of cash flows or in the notes

DISCONTINUED OPERATION
† DO is a COMPONENT of an entity that either has been disposed of or is classified as HFS and:
-represent a major line of business or geographical area of operation
-part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations
-is a subsidiary acquired exclusively with a view to resale
† A component of an entity can be a Cash Generating Unit or group of CGU, an operating segment, a reporting
unit, a geographical area or operations, a subsidiary, or any asset group that comprises of operations and cash
flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the
entity
† CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets of group of assets
† Discontinued operation occur at the earlier of the date the component is actually disposed of and the date the
criteria for classification as HFS are met
† DO is presented in the statement of profit and losses and other comprehensive income as a SINGLE AMOUNT
comprising the total of:
-post-tax profit or loss of DO
-post-tax gain or loss recognized on the measurement to fair value less cost to sell or on disposal of the assets constituting the DO
† DO is presented in the statement of financial position and statement of profit and loss and other
comprehensive income
† If the disposal of DO occurs in the same period that it was classified as HFS, the GAIN OR LOSS ON DISPOSAL of
DO is the actual gain or loss on the disposal
† If the disposal of DO occurs in a subsequent period after it was classified as HFS, the entity recognizes an
ESTIMATED LOSS ON DISPOSAL in the period that the component is classified as DO. Any gain on sale is not
recognized until the component as actually disposed of.
† When components cease to be classified as DO in the current year, the previous FS are restated. Previous
disclosures for DO are reclassified and included in continuing operations
† Net cash flows relating to the operating, investing and financing activities of a discontinued operation shall be
presented separately in the statement of cash flows with additional disclosures either in the face of the
statement of cash flows or in the notes
† Results of DO are presented in the statement of P/L after the profit or loss from continuing operations but
before the profit for the year or period