NATIONAL ACCOUNTING REGULATION (STANDARD) 27 WAS UPDATED: IMPORTANT CHANGES FOR ACCOUNTANTS
The Ministry of Finance has approved amendments to NSAU 27 “Non-current Assets Held for Sale and Discontinued Operations” by Order No. 478 dated September 30, 2024.
The authors brought the accounting treatment of business transactions related to non-current assets held for sale and discontinued operations in line with the requirements of IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”.
The Order also clarified the meaning of the terms used by NSAU 27 “Non-current Assets Held for Sale and Discontinued Operations”.
Among other things, the Order stipulates that an entity that undertakes to execute a plan of sale related to the loss of control over a subsidiary recognizes all assets of that subsidiary as held for sale if the conditions set out in this paragraph are met without regard to whether the entity will retain a non-controlling interest in its former subsidiary after the sale.
Therefore, if an entity reclassifies a non-current asset or disposal group from non-current assets held for sale to non-current assets held for distribution to owners, or vice versa, such a change is considered a continuation of the original plan of disposal.
In accordance with Order No. 478, an entity measures a non-current asset or disposal group as held for distribution among owners at the lower of its carrying amount or fair value less costs associated with the distribution.
Also, Order No. 478 states that the amounts of adjustments to the carrying amount of non-current assets held for distribution transferred from non-current assets held for sale are included in other expenses (income) of the reporting period.
Source: https://buh.ligazakon.net/news/231288_mnfn-vns-zmni-do-npsbo
