Citation:Perera, E.A.S.M. & Rathnairi, U.A.H.A. 2016. Classification of Non-Current Asset as Held for Sale. Case Studies in Accounting “Bridging the Gap”, 03: pp. 110-111. Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka.
Date:2016
Abstract:
XYZ (Pvt) Ltd is a subsidiary of ABC (Pvt) Ltd which is the main agent of A&B
PLC. The company has been acted as an agent for selling Easy Cash, Reloads and
Dongles of A&B PLC. The head office is located in Colombo 03 and there are 44
outlets in Sri Lanka. The company has a building which was occupied as the main
outlet and store which is located in Colombo 04. Later it was unoccupied and
management has decided to sell that unoccupied land and building.
But the company has recognized in the statement of financial position as a Non-
Current Asset. The asset had been depreciated and depreciation has been
charged to Income Statement as well.
