In the context of a discontinued operation, what is meant by 'held for sale'?

The term 'held for sale' refers to items or components that are actively marketed for sale and are expected to be sold within a specified period, often within a year. This classification is particularly relevant in the context of discontinued operations in accounting, as it signifies that the assets or components are no longer part of the ongoing operations and are intended to be sold to realize their value.

For assets to be classified as 'held for sale,' they must be available for immediate sale and their sale must be highly probable, meaning that management is committed to selling them and the assets are being marketed actively. This aligns with the criteria set out in accounting standards, which stipulate that such assets should not be depreciated or amortized while they are designated as held for sale.

In contrast, the other options do not accurately capture the definition of 'held for sale.' Remodeling does not relate to the intent to sell, non-profitable components could still be part of ongoing operations without a sale intent, and depreciated equipment typically signifies ongoing operational assets rather than items that are intended for sale. Thus, the focus on actively marketing components for sale reflects the core meaning of 'held for sale' in the context of discontinued operations.