Key topics Covered: Assets held for sale, Sale and lease back, Intangible Assets and Impairment

Description: his question covers a combination of critical accounting concepts that test a student’s ability to apply IFRS standards in real-world scenarios. It blends the principles of asset held for sale (IFRS 5) with sale and leaseback transactions (IFRS 16).
Furthermore, the question examines the capitalisation of costs related to intangible assets (IAS 38), it requires an understanding of how to allocate costs initially and reassess them periodically, reflecting changes in expected outcomes.
Lastly, the question delves into impairment testing (IAS 36), asking for an evaluation of when and how impairment losses should be recognised. Stresses the importance of identifying appropriate cash-generating units (CGUs).