BPP Revision Kit Mock Exam 1 Ques 24- Section B

YYong8y ago

What is the profit or loss on discontinued operation relating to "property, plant and plant" for the year ended 30 September 20X3? Dear Sir According to the context, the factory itself is expected to sell for a profit of 1.2 million. The answer is impairment loss of 1.75 million (Plant). May I know why the profit of 1.2 million from sale of factory is not included? .

P2-D2Tutor8y ago#1

Hi, We do not recognise the profit until it is sold. By stating that it is expected to be sold for this amount indicates that the asset is not to be impaired. Thanks

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