What does it indicate if an asset’s sale is highly probable according to the criteria for "held for sale"?

When an asset’s sale is deemed highly probable, this aligns with the criteria for classifying an asset as "held for sale," which hinges on specific conditions being met. One of the primary criteria is that there must be an active plan in place to sell the asset, and this sale should be expected to occur within one year. This indicates a commitment to the sale process and a reasonable confidence in its completion within a relatively short timeframe.

The requirement for an active plan underscores the seriousness and feasibility of the intended sale, demonstrating that the company is actively pursuing a transaction rather than passively waiting for a buyer. This ongoing plan is crucial not only for classification but also for financial reporting purposes, as it affects the way the asset is valued and presented in the financial statements.

This understanding of the criteria highlights the necessary proactive steps involved in ensuring the asset is truly available for sale, differentiating the situation from scenarios where there might be a lack of interest from buyers or where no substantial efforts remain to complete the sale.