If an asset is to be classified as held for sale, which of the following conditions does NOT apply?
A) The sale has been authorized by the company's management.
B) Changes to the sale plan are likely.
C) It is probable that the asset will be sold within one year.
D) There is an active program to find a buyer.

Question

Quizplus · Accepted Answer

Changes to the sale plan being likely would not be a condition for an asset to be classified as held for sale. The other conditions listed, such as management authorization, probability of sale within one year, and an active program to find a buyer, are all necessary conditions for an asset to be classified as held for sale according to accounting standards.

If an Asset Is to Be Classified as Held for Sale