Repair and Improvement Non-Current Assets before Recognition Them as Held for Sale

The issue of repairing and improving non-current assets before recognizing them as held for sale is almost not investigated by scientists and is not described in regulatory documents. Therefore, the purpose of the article is to disclose possible options for repairing and improving to non-current assets, which will be reclassified to a group of assets held for sale. The period from the moment of making decision about selling asset to the final date under the contract of it sale was divided into stages. On the basis of division into stages of the period in which the recognition of non-current assets as held for sale takes place, attention is paid to the accounting before the recognition non-current assets as held for sale that involves preparation them for further sale. This affects the validity and correctness of valuation at the time of recognition and subsequent valuation with such assets, and the success of their subsequent sale. Situations with the execution of improvements (repairs) non-current assets under different conditions were described in the article in the form of charts and factors that affect their valuation and recognition were identified. The article is shown situations with the execution of improvements (repairs) by forces and on account of the buyer or seller that occurs before recognition non-current assets held for sale and after transference to the buyer an asset that needs improvement or repair. The buyer's refusal from purchase the object was separately highlighted. It was revealed that there is a necessity of formation the relations before conclusion of sale contract at the stage of executing improvements (repairs) of non-current assets. Suggestions presented by the authors will save time of buyer's searching and will hasten sale transaction, and also will provide content expansion for some elements of accounting policy.