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Question 1: On 30 September 2012 the directors of Diego pIc decided to sell the company's services division
and the division was classified as held for sale.
The sale is expected to be completed, along with the sales of related assets, in early December 2012.
One item of plant within this division had originally cost $30,000 and had a carrying amount of
$15,000 on 1 November 2011.
Diego plc will carry on using this plant until it is sold. Diego pIc has a year end of 31 October and
depreciates all plant on a monthly straight-line basis using a monthly rate of 1%.
In accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, what
amount will berecognizedin the statement of financial position of Diego pIc as at 31 October 2012 in
respect of this plant?
A. $11,400 in non-current assets held for sale
B. $11,400 in current assets
C. $11,700 in non-current assets held for sale
D. $11,700 in non-current assets
Correct Answer: C
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