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IASB issues ED 4 on asset disposals and discontinuing operations

Jul 25, 2003

The IASB has issued ED 4 'Disposal of Non-Current Assets and Reporting of Discontinued Operations'.

We have prepared a Special Global Edition of our IAS Plus Newsletter (PDF 40k) summarising the proposals in the exposure draft.

ED 4 is part of the Short-Term Convergence Project being undertaken jointly by the IASB and the FASB. The proposals in ED 4 would achieve substantial convergence of IFRS with the requirements of US SFAS 144 Accounting for the Impairment or Disposal of Long-Lived Assets, with respect to:

  • classifying, measuring, and presenting assets held for sale
  • classifying and presenting discontinued operations.

ED 4 does not address impairment of long-lived assets that are not being disposed of, which is covered by IAS 36, Impairment of Assets. The impairment recognition and measurement standards in SFAS 144 are significantly different from those in IAS 36, but those differences are not being addressed in the short-term convergence project.

Comment deadline is 24 October 2003. Click for IASB Press Release (PDF 35k).