How is the measurement of assets held for sale determined?

The measurement of assets held for sale is determined at the lower of carrying value and fair value less costs to sell. This approach is consistent with the accounting standard requirements that provide guidance on how to recognize and measure assets held for sale under applicable frameworks, such as IFRS and U.S. GAAP.

When an asset is classified as held for sale, it is no longer depreciated or amortized, and its value must be reassessed to ensure that the financial statements reflect a true and fair view of its realizable value. Fair value less costs to sell effectively captures the amount that could be received from the sale of the asset, minus any direct selling costs. This methodology ensures that the asset is not recorded at an inflated value when it is no longer part of ongoing operations and is intended to be sold.

By measuring the asset at the lower of these two values, the accounting framework protects stakeholders from overestimating the value of resources that are being transitioned from active use to sale, thereby maintaining the integrity of financial statements.