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1-“Valuation at depreciated replacement cost is allowed when there is no real market value, because of the specialised nature of the assets”
https://www.accaglobal.com/pk/en/discover/cpd-articles/corporate-reporting/ias16-ppe.html
Normally when Fair value is used we refer to IFRS 13 and it gives us 3 levels,3rd level being valuation techniques .BUT above case is exception for ias-16?
2-Depreciation doesnot cease when when HELD for disposal, does it implicate “being held for disposal” doesnot itself satisfies IFRS 5 criteria?
3-Some years after recognition, we came to know that we don’t need to dismantle asset for some reason (law or we bought the land asset was planted on) , we reverse dismantling from ASSET or recognise Profit .
4-what if we face a question regarding residual value being under-Estimated or over-Estimated.any ideas what should we write ?
Hi,
1. Yes
2. I’ve not come across this before sorry.
3. We have no obligation so we would reverse out the provision.
4. Residual value is an estimate and so any changes in estimate are dealt with prospectively under IAS 8.
Thanks
For 3, when you say reverse out the provision ,it means through P/L or Asset?
(Dr Provision Cr Asset OR Dr Provision Cr P/L)Thanks
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