Document ID: chunk:federal_register_of_legislation:F2023L00010:body:0:p36
Version: federal_register_of_legislation:F2023L00010
Segment Type: other
Provision Reference: 
Character Range: 95736–99895

its current fair value;
(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the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn; and
(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.
BC69            The Board decided to propose in the Fatal-Flaw Review draft the overarching principle for potentially identifying a higher and better alternative use is that the sale or alternative use must be 'highly probable'. In the case of an asset with a potentially higher and better alternative use identified from a future sale or distribution to owners, the 'highly probable' test would be met when the asset meets the criteria for classification as 'held for sale' under AASB 5. For an asset with a higher and better alternative use identified from a future redeployment, the Board adapted the criteria in paragraphs 7 and 8 of AASB 5.
BC70            The following table outlines the AASB 5 criteria and the conditions proposed in the Fatal-Flaw Review draft for determining whether it is highly probable that the asset will be used for an alternative purpose.
Criteria in paragraphs 7 and 8 of AASB 5                                                                                                                                                                                                                                                                                                                                   The Board's decision when developing the Fatal-Flaw Review draft
Not applicable.                                                                                                                                                                                                                                                                                                                                                              (i) Added a criterion that the alternative use of the asset is physically possible, legally permissible and financially feasible in accordance with paragraph 28 and the proposed paragraph Aus28.1.
  (a) The asset must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets.                                                                                                                                                                                                                   (ii)  Adapted this criterion as "the asset is immediately available to be used for the alternative purpose in its present condition."
  (b) The appropriate level of management is committed to a plan to sell the asset.                                                                                                                                                                                                                                                                                          (iii)  Adapted these two criteria as "the appropriate level of management is committed to a plan to change the usage of the asset to that alternative purpose, and an active programme to complete the plan has been initiated."
  (c) An active programme to locate a buyer and complete 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.