Assets Held For Sale Current
Non-Current Assets or Disposal Groups Classified as Held for Sale
Assets Held For Sale Current represent non-current assets (or disposal groups) that a company has committed to sell, with the sale highly probable within 12 months. They are reclassified from their original categories (e.g., PP&E, intangibles) and presented separately as current assets, measured at the lower of carrying amount or fair value less costs to sell.
What It Represents
Assets Held For Sale Current are assets (or groups including liabilities) management has decided to divest. They no longer support ongoing operations and are actively marketed for sale.
- Individual non-current assets (e.g., building, machinery)
- Disposal groups (business segment, subsidiary assets + liabilities)
- Investment properties or intangibles meeting criteria
Reclassification signals strategic shift—divestiture, restructuring, or portfolio cleanup.
Classification Criteria
Strict conditions must be met:
- Available for immediate sale in present condition
- Sale highly probable (committed plan, active marketing)
- Expected completion within one year (extensions possible)
- Management committed—no shopping around
Once met, reclassify even if sale later slips (unless exceptional).
Measurement Rules
- Lower of carrying amount or fair value less costs to sell
- Impairment loss if FV < carrying (to income, usually)
- No depreciation/amortization while classified
- Subsequent increases limited to prior impairments
Disposal group: Impairment allocated first to goodwill, then pro-rata.
Balance Sheet Presentation
Separate section in current assets:
- 'Assets Held For Sale Current'
- 'Assets Classified as Held for Sale'
- No offsetting with related liabilities (separate 'Liabilities Held for Sale')
Major classes disclosed on face or in notes.
Common Scenarios
- Divesting non-core business unit
- Selling surplus property or plant
- Spinning off subsidiary
- Restructuring operations
- Responding to regulatory requirements
Analytical Implications
- Upcoming corporate restructuring or portfolio shift
- Potential gain/loss on disposal
- Cleaner view of continuing operations
- Liquidity impact (cash expected soon)
- Impairment signals overvaluation of assets
Adjust ratios (ROA, debt-to-assets) excluding held-for-sale for ongoing performance.
Key Takeaways
Assets Held For Sale Current are non-current assets/groups earmarked for near-term sale.
Reclassified to current when sale highly probable within 1 year.
Measured at lower of carrying or fair value less costs to sell.
No depreciation while held for sale.
Signals strategic divestiture—separates from continuing operations.
Review notes for composition, impairment, and expected proceeds.
Assets Held For Sale Current
Non-Current Assets or Disposal Groups Classified as Held for Sale
Assets Held For Sale Current represent non-current assets (or disposal groups) that a company has committed to sell, with the sale highly probable within 12 months. They are reclassified from their original categories (e.g., PP&E, intangibles) and presented separately as current assets, measured at the lower of carrying amount or fair value less costs to sell.
Table of Contents
What It Represents
Assets Held For Sale Current are assets (or groups including liabilities) management has decided to divest. They no longer support ongoing operations and are actively marketed for sale.
- Individual non-current assets (e.g., building, machinery)
- Disposal groups (business segment, subsidiary assets + liabilities)
- Investment properties or intangibles meeting criteria
Reclassification signals strategic shift—divestiture, restructuring, or portfolio cleanup.
Classification Criteria
Strict conditions must be met:
- Available for immediate sale in present condition
- Sale highly probable (committed plan, active marketing)
- Expected completion within one year (extensions possible)
- Management committed—no shopping around
Once met, reclassify even if sale later slips (unless exceptional).
Measurement Rules
- Lower of carrying amount or fair value less costs to sell
- Impairment loss if FV < carrying (to income, usually)
- No depreciation/amortization while classified
- Subsequent increases limited to prior impairments
Disposal group: Impairment allocated first to goodwill, then pro-rata.
Balance Sheet Presentation
Separate section in current assets:
- 'Assets Held For Sale Current'
- 'Assets Classified as Held for Sale'
- No offsetting with related liabilities (separate 'Liabilities Held for Sale')
Major classes disclosed on face or in notes.
Common Scenarios
- Divesting non-core business unit
- Selling surplus property or plant
- Spinning off subsidiary
- Restructuring operations
- Responding to regulatory requirements
Analytical Implications
- Upcoming corporate restructuring or portfolio shift
- Potential gain/loss on disposal
- Cleaner view of continuing operations
- Liquidity impact (cash expected soon)
- Impairment signals overvaluation of assets
Adjust ratios (ROA, debt-to-assets) excluding held-for-sale for ongoing performance.
Key Takeaways
Assets Held For Sale Current are non-current assets/groups earmarked for near-term sale.
Reclassified to current when sale highly probable within 1 year.
Measured at lower of carrying or fair value less costs to sell.
No depreciation while held for sale.
Signals strategic divestiture—separates from continuing operations.
Review notes for composition, impairment, and expected proceeds.
Related Terms
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