As of 13 November 2024, amendments to the National Accounting Standard (NAS) 27 “Non-current Assets Held for Sale and Discontinued Operations” have come into force.
In particular, the accounting rules for transactions involving non-current assets held for sale, disposal groups and discontinued operations have been aligned with the requirements of IFRS 5.
Key objective of the amendments
The main purpose of updating NAS 27 is to bring national accounting practices in line with the requirements of IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”.
The amendments apply to the accounting of:
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non-current assets held for sale;
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disposal groups;
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non-current assets held for distribution to owners;
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discontinued operations.
Key changes
In particular, the amendments provide for:
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clarification and expansion of terminology, including updated definitions of disposal groups, components of an entity, non-current assets held for distribution, costs to sell, and value in use;
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introduction of accounting rules and recognition criteria for assets and disposal groups held for distribution to owners;
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clarification of asset classification in cases of loss of control over a subsidiary, regardless of whether a non-controlling interest is retained;
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establishment of measurement requirements for assets held for distribution at the lower of carrying amount or fair value less costs related to distribution;
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determination of the procedure for recognising adjustments to the carrying amount of assets in profit or loss of the reporting period;
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clarification of approaches to presenting the results of discontinued operations in financial statements.
Regulatory framework
The amendments were approved in accordance with Article 6 of the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” and the Regulation on the Ministry of Finance of Ukraine.
Responsibility for monitoring compliance with the order has been assigned to the Deputy Minister of Finance of Ukraine.
Recommendations for business
Experts at Kreston Ukraine recommend that companies assess the impact of these changes on their accounting policies and financial statements, particularly in cases involving asset disposals, business restructuring or the discontinuation of certain business segments.
