Once an asset has been designated as held for sale it must be re measured to the lower of its carrying value and its fair value less costs to sell.

Question

Quizplus · Accepted Answer

This statement is true according to the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). When an asset is classified as held for sale, it must be revalued and stated at the lower of its carrying value or fair value less costs to sell on the balance sheet. This is done to ensure that the asset is not overstated on the financial statements and reflects its true economic value.

Once an Asset Has Been Designated as Held for Sale