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Ask the Tutor ACCA SBR
IAS16 Chapter 9
Hi,
The open market value is the fair value, so the value in use is not relevant. It is only relevant when looking at impairments.
The tax rules take the capital allowance and apply it to the cost of the asset, ignoring the residual value. The residual value is accounting terminology that is not relevant to the tax authorities.
Thanks
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