Accounting Standards
IFRS 5 and Assets Held for Sale Explained: Reclassifying a £220,000 Delivery Fleet Before You Sell the Division
When a sale becomes highly probable, IFRS 5 changes everything about how you account for the assets involved. This article walks through a worked example of reclassifying a £220,000 delivery fleet as held for sale, covering the four recognition tests, the impairment calculation, journal entries, and the common mistakes that catch SME owners off guard during due diligence.