It stands for held for sale; a category or designation of assets that an entity currently holds on its balance sheet but plans to sell in the market against a monetary consideration. An example is a non-current asset that is classified as held for sale- specifically in the case when its carrying amount is expected to be recovered by selling the asset and not from its continuous use by the entity.

The process of selling such assets can be time-consuming and complicated (in the sense that it involves particular marketing and selling efforts), as in the case of specialized assets for which interested buyers may take a long time to locate and transact with. During the period of search and matching, the assets are not used in the entity’s operations and do not generate any revenues.

Assets (or disposal groups) held for sale are not depreciated as the intention to dispose is clear. These assets are measured at the lower of carrying amount and fair value less costs to sell, and are presented separately in an entity’s statement of financial position.