I do get that the Assets held for sale must be valued at Fair Market Price. Can someone tell me what’s the difference in accounting treatement of such assets under USGAAP v/s IFRS?
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Assets held for sale are like Inventory and if it is Long lived asset held for sale, we test them for impairment. Compare carrying value with the NRV and find out the impairment charge and check for reversal if any under both US GAAP and IFRS.
I guess reversal of impairment is not allowed under USGAAP if I am correct. This is all fine but my main question was about accounting treatement!
Does the unrealised gain or loss for assets held for sale comes under Income statement or other comprehensive in income in statement of equity like PUFER?? Or there’s a difference between the two GAAPs in such treatment?
In both US GAAP & IFRS, assets for sale will be valued at Fair Market Value. UG/UL will come in the income statement.
And yes reversal of write down is not allowed in US GAAP.
If any unrealized gain/loss of Assets available for sale comes under Income statement, then what comes under U of PUFER?
I though U was Unrealized Gain/ Loss of Assets available for sale??
You are confusing this with another chapter . that is what even I did.
Assets held for sale is different than Available for Sale as Vidya told below.
PUFER is OCI stuff.
U= Any unrealized Gain/Loss from Available for Sale securities.
Oh ok ok! So to summarize we have 3 things:
1. Assets Available For Sale (Fixed Assets like P,P&E or Investment Properties): Unrealized Gain/Loss comes in I/S
2. Available for Sale Securities (Like Equity and Bonds): Unrealized Gain/Loss comes in OCI.
3. Trading Securities(Short Term Trades): Unrealized Gain/Loss comes again in I/S.
Is this appropriate to finalize?
Are Assets held for sale trading securities? I guess Held for Sale means Available for Sale and any Unrealized Gain/Loss shall come in OCI?
I checked my notes and its written it comes in income statement.
Can you please tell me under which topic and chapter is this written so that I can also refer the same? Thanks.
Its from the chapter long lived assets, class 4.
Assets held for sale and Investment available for sale are both different.
In Investments available for sale, any unrealized gain/loss comes under OCI.
Oh okay. This is Long Lived Assets. Thanks.
Yes.
Ok thanks!!