This document discusses 4 case studies related to classifying assets as "held for sale" under IFRS 5. Case study 1 finds that Company X has satisfied the conditions to term its building an asset available for sale. Case study 2 finds that if Company X would only vacate upon completion of a new building, it would not fulfill the definition. Case study 3 finds that HK LTD's plant could not be considered available for immediate sale if the sale would only occur after pending orders are completed in 30 days. Case study 4 finds that while R Ltd's board has approved selling a division, additional approvals could take over a year, so the division could not be classified as a disposal group

1. CASE STUDIES ON IFRS 5
Case Study 1
Company X is committed to a plan to sell its building and has given
an advertisement to locate a buyer. It intends to transfer the building
to a buyer after it vacates the building which would be after the
registration.
Has it satisfied the condition for terming the plant as asset available
for sale?
Case study 2
In the above case if the company X would vacate only if its new
building construction is completed would it fulfil the definition of the
asset available for sale?
CASE STUDY 3
HK LTD is planning to sell a plant and has initiated actions and has
identified a buyer. There are pending customer orders. It intends to
sell the plant with its operations. All pending orders on the date of
sale will be transferred to the buyer.
Will you consider this plant as available for immediate sale?
Will your answer be different if the sale would take place only after
the pending orders are completed and it would take 30 days to do
so?
Case study 4
The board of R Ltd a PSU has decided to sell a division for which the
concerned ministry has given the approval. The ministry’s approval is
to be obtained before the selection of the purchaser. Sale may also
require the approval of Disinvestment Commission. Hence it may
take more than a year to sell. Can you classify the division as
disposal group held for sale