[mked]

If I have a machine (useful life = 10 years) and at 2nd year I decide to sell it in the next year , how can I record it at this year,as a current or non-current assets?

[hamzashakaa]

In accordance to IFRS 5 (Non-Current assets held for sale) in order to classify the asset as current assets held for sale the asset must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets and its sale must be highly probable.
For the sale to be highly probable, the appropriate level of management must be committed to a plan to sell the asset, and an active programme to locate a buyer and complete the plan must have been initiated. Further, the asset must be actively marketed for sale at a price that is reasonable in relation to its current fair value. In addition, the sale should be expected to qualify for recognition as a completed sale within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The probability of shareholders’ approval (if required in the jurisdiction) should be considered as part of the assessment of whether the sale is highly probable.

If this criteria is met, then the machine should be classified as current assets and measured at the lower of its carrying amount and fair value less costs to sell and depreciation on such assets should be ceased.(No depreciation should be recorded after classification).

[rehmanvohra]

The situation refers to one single asset and I think in such as case IFRS 5 is not applicable

[hamzashakaa]

Actually IFRS 5 does not state that there should be more than one asset in order to be classified as current. If any asset met the criteria mentioned above it should be classified as current.