Woodside Petroleum Ltd|Financial Statements 125
for the year ended 31 December 2018
D.7 Non-current assets held for sale
In December 2018, the partners of the North West Shelf joint
operation committed to sell two LNG vessels for a total price of
US$60 million. Woodside’s share is US$10 million.
Accordingly, the LNG vessels within the North West Shelf
operating segment have been reclassified as non-current assets
held for sale. The sale of each LNG vessel is subject to a number
of conditions precedent and is expected to complete in 2019.
Impairment relating to the non-current assets held for sale
Immediately before the classification of the LNG vessels as
non-current assets held for sale, the recoverable amount was
estimated for the LNG vessels within oil and gas properties and
an impairment of US$39 million was recognised (Note B.4).
Assets and liabilities of the non-current assets held for sale
At 31 December 2018, the LNG vessels have been classified as
non-current assets held for sale for US$10 million. No liabilities
are associated with the LNG vessels classified as held for sale.
Recognition and measurement
The Group classifies non-current assets as held for sale if their
carrying amounts will be recovered principally through sale
rather than through continuing use. Such non-current assets
classified as held for sale are measured at the lower of their
carrying amount and fair value less costs to sell. Costs to sell
are the incremental costs directly attributable to the sale,
excluding the finance costs and income tax expense.
The criteria for held for sale classification is regarded as met
only when the sale is highly probable and the asset is available
for immediate sale in its present condition. Actions required
to complete the sale should indicate that it is unlikely that
significant changes to the sale will be made or that the decision
to sell will be withdrawn. Management must be committed to the
sale, expected within one year from the date of the classification.
Property, plant and equipment and intangible assets are not
depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are presented
separately as current items in the statement of financial position.