01-28-2010, 09:05 PM
The only reason for doubt is that paragraph 6 of IFRS 5 states
"An entity shall classify a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use."
And selling the segment to a newly formed subsidiary is RESTRUCTURING the same operations and the purpose of the owners is still to recover the benefits of the segment through continuing use rather than through disposal.
So will IFRS still be applicable??
"An entity shall classify a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use."
And selling the segment to a newly formed subsidiary is RESTRUCTURING the same operations and the purpose of the owners is still to recover the benefits of the segment through continuing use rather than through disposal.
So will IFRS still be applicable??
