Statements of Financial Accounting Standards In Taiwan
　 　 　
　 SFAS 38 Non-current Assets Held for Sale and Discontinued Operations 　
　                          　
　 　
　 Status 　
　

Issued by the Financial Accounting Standards Committee In Taiwan on 30 November 2006

 　
　 　 　
　 Summary 　
　 The purpose of this Statement is to establish the accounting standards for non-current assets held for sale and discontinued operations. A non-current asset (or disposal group) is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale, and (a) represents a separate major line of business or geographical area of operations, (b) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or (c) is a subsidiary acquired exclusively with a view to resale. 　
　 　 　
　 Accounting for non-current assets (or disposal groups) as held for sale 　
　 A non-current asset (or disposal group) is classified as held for sale when it is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups) and its sale must be highly probable, and its transfer expected to qualify for recognition as a completed sale, within one year, with certain exceptions 　
　 A firm shall measure a non-current asset classified as held for sale at the lower of its carrying amount or fair value less cost to sell and to cease depreciation (amortization). 　
　 An entity shall not classify as held for sale a non-current asset (or disposal group) that is to be abandoned. This is because its carrying amount will be recovered principally through continuing use. 　
　 　 　
　 Disclosure for non-current assets (or disposal groups) and discontinued operation 　
　 This statement also specifies disclosures about non-current assets (or disposal groups) as held for sale, and requires non-current assets (or disposal groups) held for sale to be presented separately on the face of the balance sheet and the results of discontinued operations to be presented separately in the income statement. 　
　 　 　
　

Effective date

 　
　 This statement becomes effective for financial statements for the fiscal year beginning on or after 1 January 2007. 　
　 　 　
　 　 　
　 　 　

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