ACCOUNTING OF FIXED ASSETS HELD FOR SALE UNDER TFRS 5 AND SAMPLE APPLICATIONS

Assets that businesses acquire for use in their operations and that they do not intend to dispose of within an operating period are expressed as fixed assets. Although fixed assets are the most important asset group that provides cash flow to the business, businesses sometimes wish to dispose of their fixed assets. In particular, if the business management has a detailed sales plan for the sale of the fixed asset and the asset is likely to be sold in the market, the relevant fixed asset or asset group is removed from the fixed asset account group and transferred to current assets in accordance with the “TFRS 5 Non-current Assets Held for Sale and Discontinued Operations” standard. In the process of classifying non-current assets that the entity withdraws from use or production as held for sale, their net book values are compared with their fair values less costs to sell and recorded at the lower value. If the sale of the asset is not realized, it continues to be measured at the end of the period with the lower of net book values and fair value less costs to sell. When the relevant literature is examined, it is seen that the TFRS 5 Non-current Assets Held for Sale and Discontinued Operations standard finds application in banks and financial leasing companies. In this context, in this study, information on the classification, measurement and presentation in financial statements of fixed assets held for sale are given.