A subsidiary entity, Lilac Ltd$,$ is for sale at a price $ $20$ million. There has been some interest

from prospective buyers but no sale as yet. One buyer has made an offer of $ $19$ million but the

directors of the parent company have declined the offer. An accounting firm which was appointed

by the parent company has just submitted a report and advice that the fair value of Lilac Ltd is $

$21\mathrm{.}5$ million. They have decided not to lower the sale price of Lilac Ltd at the moment.

Discuss whether the subsidiary can be classified as held for sale