What is a Disposal Group?

A disposal group is a cluster of assets and liabilities that are intended to be sold off or disposed of in some other way as part of a single transaction. These items are classified separately as held for sale on an organization’s balance sheet, and are not depreciated. Instead, they are measured at the lower of their carrying amount or their fair value less costs to sell. Assets can be classified as held for sale if the organization intends to sell them to a third party within one year.