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Decommissioning cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Decommissioning cost

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by AvatarStephen Widberg.
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  • October 18, 2022 at 9:07 pm #669258
    Avatarmaisarah.hari
    Member
    • Topics: 15
    • Replies: 6
    • ☆

    Hello,

    If we choose to measure the asset with fair value, how do we account for the asset that have decommissioning cost attached to it? Does we take fair value as the measurement or we add the fair value plus with the decommissioning cost?

    Thank you

    October 19, 2022 at 5:37 am #669297
    AvatarStephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3452
    • ☆☆☆☆☆

    Fair value (FV model) plus decommissioning cost (cost model), I would think.

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