How is the building classified

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On January 2, 2015, Lima Company committed a plan to sell its other building and classified this asset as held for sale. The carrying value of the building as of January 2, 2015 is P5M. Lima Company priced the building at P5.5M, which is equal to its fair market value.

During 2015, the market conditions that existed at the date the building was classified initially as held for sale deteriorate and as a result, the asset is not sold at the end of 2015. During 2015, the company actively solicited but did not receive any reasonable offers to purchase the building and, in response, reduced the price to P4.8M.

Question 1: The building continues to be actively marketed at a price that is reasonable given the change in market conditions. In Lima's balance sheet at December 31, 2015, how is the building classified and at what amount should it be measured?

Reference no: EM132627894

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