What is the treatment of assets held for sale under UK GAAP?

Under UK GAAP, assets held for sale are treated with specific recognition and measurement criteria that differ from regular fixed assets. When an asset is classified as held for sale, it should not be depreciated as long as it meets the qualifications outlined in the relevant accounting standards. This classification implies that the asset is expected to be sold rather than used in operations, which changes its accounting treatment.

The correct approach is to suspend depreciation on such assets until they are disposed of. The reason behind this treatment is that the focus shifts to the recovery of the carrying amount through the sale rather than through ongoing usage. This distinction is essential for presenting the financial position accurately during the period in which the asset is classified as held for sale.

While other options address different facets, they do not follow the correct treatment for assets held for sale based on UK GAAP. For example, revaluation each fiscal quarter is unnecessary, and treating the asset as inventory would not align with the specific criteria for classification as held for sale. Additionally, recognizing the asset as an expense immediately does not reflect its anticipated future economic benefit from sale rather than a current operational expense.