Problem 32-4 Multiple choice (PFRS 5)

1. It is group of assets to be disposed of by sale or otherwise, together as a group in a

single transaction, and liabilities directly associated with those assets that will be
transferred in the transaction.
a. a Disposal group
b. Discontinued operation
c. Noncurrent asset
d. Cash generating unit

2. An entity shall classify a noncurrent asset or disposal group as held for sale when
a. The carrying amount of the asset or disposal group is recovered through a
sale transaction.
b. The carrying amount of the asset or disposal group is recovered through
continuing use.
c. The noncurrent asset or disposal group is abandoned.
d. The noncurrent asset or disposal group is idle or retired from active use.

3. For the sale of a non-current asset to be highly probable, which of the following
statements is incorrect?
a. Management must be committed to a plan to sell the asset.
b. An active program to locate a buyer and complete the plan must have been
initiated.
c. The asset must be actively marketed for sale at a reasonable price in relation to
the current fair value.
d. The sale is expected to qualify for recognition as a completed sale within
two years from the date of classification of the asset as held for sale.

4. An entity shall measure a noncurrent asset or disposal group classified as held for
sale at
a. Carrying amount
b. Fair value less cost of disposal
c. Lower of carrying amount and fair value less cost of disposal.
d. Higher of carrying amount and fair value less cost of disposal.