question archive Assets that are classified as held for sale under PFRS 5 are Amortized over a period not exceeding 5 years

Assets that are classified as held for sale under PFRS 5 are Amortized over a period not exceeding 5 years

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Assets that are classified as held for sale under PFRS 5 are

  • Amortized over a period not exceeding 5 years.
  • Not depreciated.
  • Required under PAS 36 to be tested for impairment annually.
  • Depreciated.

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The correct answer is: not depreciated.

Step-by-step explanation

According to PFRS 5, para 25, a non-current asset classified as held for sale or an asset which is part of a disposal group classified as held for sale is not depreciated or amortized.

 

Thus the correct answer is the second option; not depreciated.

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