Under what conditions is an asset classified as held for sale?

An asset is classified as held for sale when it meets specific criteria set out in IFRS 5, which addresses the accounting for non-current assets held for sale and discontinued operations.

One important condition for classifying an asset as held for sale is that its sale must be highly probable. This implies that management has made a commitment to sell the asset, and there must be an active marketing plan in place to locate a buyer. Furthermore, the asset should be available for immediate sale in its current condition, meaning it does not require significant modifications or enhancements before it can be sold.

Hence, both conditions about being sold in its current condition and the sale being highly probable are essential. This correctly supports the choice indicating that both conditions lead to the classification of the asset as held for sale. Therefore, D, which includes both of these critical points, rightly captures the requirements for such classification.