Our company decided to sell the asset and classified it as held for sale in line with IFRS 5.

After 1 year, we are still not able to sell this asset. What shall we do? How shall we report it in our accounts since we failed to meet the conditions in IFRS 5?


First of all, you have to assess why the sale did not happen within one year.

If this is due to some events beyond entity’s control, then yes, you can still keep asset as held for sale, if your management is still committed to make a sale.

However, I strongly recommend studying Appendix B of IFRS 5 – you have all conditions listed there, guiding you to assess whether you can or cannot keep an asset as held for sale.

I would say that unless you made certain actions, you will have to reclassify the asset back from held for sale category in line with par. 27 of IFRS 5, keeping it under PPE at lower of recoverable amount and carrying amount less accumulated depreciation (as if you would have never held it at fair value).