33Administered investments held for sale

33 Administered investments held for sale

Guide to this section

The purpose of this section is to set out the accounting requirements for administered investments held for sale on behalf of the Commonwealth.

(1) Administered investments held for sale: (a) are accounted for in accordance with section 16 (financial instruments); (b) must be reported by the relevant portfolio department unless a formal agreement or decision has been made to transfer the investments to Finance; and (c) must be transferred at net book value. (2) The costs of sale of an administered investment: (a) are expensed as incurred, regardless of whether the investment meets the criteria to be held for sale in AASB 5; and (b) must not be added to the carrying amount of administered investments. (3) Where the selling costs are expensed across a number of reporting periods, the total selling costs must be disclosed in a note to the administered reports. (4) Reporting entities must disclose the following for each sale of an administered investment: (a) proceeds from sale; (b) written down value of the asset sold; (c) recognised gain or loss on sale; (d) selling costs incurred; and (e) the net gain or loss after deducting selling costs incurred. (5) Where a decision has been made to sell an administered investment, but the transfer date is not specified, the asset is deemed to have been transferred on the date of the sale decision.