Skip to content

Ask the Tutor ACCA SBR

IAS16 Chapter 9

Former userFormer user8y ago

[Content removed at user request]

P2-D2P2-D2Tutor8y ago#1
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
Sign into reply to this topic.