Question

For a non-current asset to be classified as held-for-sale the asset must be: In saleable condition Converted to cash through use Highly possible to be sold Planned to be sold within two years

Answer 1

The answer is it must be highly possible to be sold.

Step-by-step explanation:

For a non current asset to be classified as held-for-sale, the following must be satisfied:

1. The asset must be available for immediate sale in its present state(condition) and location.

2. The asset's sale is expected to be completed within a year(12 months) as 'held for sale'

3. The sale of the asset must be highly probable(through management's commitment to the sale of the asset and the existence of active marketing for the asset)