Document ID: chunk:federal_register_of_legislation:F2024C00046:body:0:p88
Version: federal_register_of_legislation:F2024C00046
Segment Type: other
Provision Reference: 
Character Range: 231968–234788

is highly probable; and
(b)                   remove the proposed condition in (ii) of the table – that "the asset is immediately available to be used for the alternative purpose in its present condition". In respect of an asset that will be redeployed, this condition may sometimes be satisfied after satisfying condition (iv).
BC72            In making the decisions noted in paragraph BC71(a), the Board:
(a)                    considered that, if reasonably available information exists that cessation of the asset's current use will occur within one year of the measurement date, and the other conditions in paragraph Aus29.2 are met, there is sufficient evidence to indicate that the asset's current use is no longer its highest and best use. It would be inappropriate for an asset to continue to be measured based on its current use when cessation of that use is imminent and an active programme to complete the planned change of use has been initiated;
(b)                   to avoid imposing a potential requirement to seek information about decisions made by senior levels of government but not yet communicated to the holder of the subject asset, added a qualifier in paragraph Aus29.2(d) that the condition would be triggered only if reasonably available information exists that it is met; and
(c)                    noted that being "highly probable that the current use of the asset will cease within one year" aligns with the text in paragraph 8 of AASB 5.
BC73            In making the decision noted in paragraph BC71(b), the Board noted that applying the condition in (ii) of the table in paragraph BC70 could result, inappropriately, in an asset being measured based on its original use when that use has ceased. For example, an asset might take several years to adapt for its alternative use. That alternative use might be the predominant source of benefits once cessation of the asset's current use is imminent, and would be the only source of benefits if the asset's original use has ceased (and its recommencement is unrealistic). The Board also noted the objective of AASB 5 for initially classifying an asset as 'held for sale' is to determine the point from which the asset's carrying amount will be recovered principally through a sale transaction rather than through continuing use (AASB 5 paragraph 6).

Transfers of assets
BC74            A stakeholder requested the Board to clarify whether the proposed conditions in (i)–(v) of the table in paragraph BC70 would apply to assets that will be transferred to another entity in neither a sale nor a distribution to owners. The Board considered that while the asset continues to be recognised (ie until transferred), the not-for-profit public sector entity is not required to consider whether the asset's highest and best use differs from its