IFRS 5 sets out the criteria for classifying non-current assets or disposal groups as held for sale. When assets meet these criteria, they should be measured at the lower of their carrying amount or fair value minus costs to sell. This ensures that the financial statements reflect their current economic benefit effectively. In addition, IFRS 5 requires that results of discontinued operations (those which the entity has decided to dispose of or discontinue) be presented separately in the statement of profit or loss to provide a clear distinction from ongoing operations. For example, when a company decides to sell a subsidiary, the carrying amount of the subsidiary's assets should be assessed under IFRS 5 if they will no longer be used in continuing operations.