The Board of PKL Bhd approves a plan to sell its manufacturing plan. Management has initiated an active programme to lacate a buyer and its expect to complete the sale within one year. At the planned commitment date, there is a back log of uncompleted customer orders. PKL Bhd intends to transfer the manufacturing facility with its operations.

Required:

a. Explain whether the criteria for classification as non current assets held for sale are met;

b. Suppose PKL Bhd intends to transfer the manufacturing facility with its operations and eliminates the backlog of uncomplete customer orders. Would the criteria for classification be met?