"Held for Sale" is an accounting term used to classify a company's assets that are intended to be sold within a short timeframe, typically within one year. These assets are reclassified from their usual asset category (e.g., property, plant, and equipment) into a specific "held for sale" category on the balance sheet. To qualify as "held for sale," certain criteria must be met, such as the asset being available for immediate sale in its current condition and the sale being highly probable within a specified timeframe. This classification ensures that the financial statements clearly distinguish assets that are expected to be monetized soon, thereby providing transparency to financial statement users.

For instance, if a company decides to sell a building it owns and meets the criteria, then the building will be reclassified on the balance sheet from property, plant, and equipment to assets held for sale. This differentiation might also impact the depreciation policy for that asset, often ceasing further depreciation once reclassified.