Document ID: chunk:federal_register_of_legislation:F2024C00046:body:0:p87
Version: federal_register_of_legislation:F2024C00046
Segment Type: other
Provision Reference: 
Character Range: 228965–232209

the plan has been initiated.
  (d) The asset must be actively marketed for sale at a price that is reasonable in relation to its current fair value.                                                                                                                                                                                                                                                    Omitted criterion (d) because it is specific to a sale transaction and is not relevant for determining whether it is highly probable that an asset will be redeployed.
  (e) The sale should be expected to qualify for recognition as a completed sale within one year from the date of classification (except for specific conditions permitted by paragraph 9 of AASB 5), and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.    (iv)  Adapted this criterion as "The change in the asset's use is expected to be completed within one year from the measurement date. Actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn."
  (f) The probability of shareholders' approval (if required in the jurisdiction) should be considered as part of the assessment of whether the sale is highly probable.                                                                                                                                                                                                     (v) Adapted this criterion as "Any approvals required to change the asset's usage have been obtained."

Stakeholder feedback on the Fatal-Flaw Review draft and the Board's redeliberations

Assets that will be used for an alternative purpose
BC71            During the outreach connected to the Fatal-Flaw Review draft, some stakeholders requested the Board to clarify the conditions determining whether an asset would be judged to be highly probable to be used for an alternative purpose. After considering those stakeholder comments, the Board decided to revise those proposed conditions (noted in the table in paragraph BC70), as follows:
(a)                    amend the criterion in (iv) of the table to:
(i)                     clarify the proposed principle that "the change in the asset's use is expected to be completed within one year from the measurement date" by stipulating the more specific condition that "based on reasonably available information, it is highly probable that the current use of the asset will cease under the plan within one year" (of the measurement date); and
(ii)                   delete the condition that: "Actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn" because that condition is encompassed by the condition that cessation of the asset's current use within one year 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