Final answer:
The difference between IFRS and U.S. GAAP in classifying an asset as 'held for sale' lies in the specific criteria and definitions each standard requires for such classification, with some nuanced differences in interpretation and application.
Step-by-step explanation:
The difference between IFRS and U.S. GAAP in classifying a component as 'held for sale' primarily lies in the criteria and specific definitions each set of standards requires for this classification. In general, under IFRS, an entity must classify a component as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. This is detailed in IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations. For a component to be classified as held for sale, certain conditions must be met, such as the asset being available for immediate sale in its present condition, the sale must be highly probable, and the sale is expected to be completed within one year from the date of classification.
Conversely, U.S. GAAP has similar criteria outlined in ASC 360-10-45, but there are nuances in the interpretation and application that can lead to differences in classification between the two standards. For example, U.S. GAAP has additional guidance on what constitutes 'marketed actively' and it also requires that actions required to complete the sale should indicate that it is unlikely significant changes to the plan will be made or that the plan will be withdrawn.