IAS 41

This topic has 1 reply, 2 voices, and was last updated 8 years ago by P2-D2.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
January 17, 2018 at 11:08 am #430753
ajjajj
Member
- Topics: 18
- Replies: 47
Hi Sir,

Just confused with IAS 41, when valuing the assets at the reporting date. the IAS rules state that the assets should be valued at fair value less cost to sell the assets. My question is would we deduct income tax too and treat it same as transaction cost?
or should we ignore the tax?
January 19, 2018 at 9:35 pm #431395
P2-D2
Keymaster
- Topics: 4
- Replies: 7235
Hi,

Costs to sell are those directly incurred as a result of selling the asset (commissions and broker fees). The standard specifically excludes income tax.

Thanks
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.