Halfway thru the year an asset is identified as an asset held for sale after meeting the criteria in ifrs 5. at the start of the year the carrying value was 150,000 (original cost 200,000 two years ago). the asset has a 10 year life and the depreciation is done using straight line.
what shd the depreciation be for the year:
a. 15000
b. 12500
c. none
d. 25000
answer says B.
b for but!!!!
150000/8=18750 and for six months it shd half of this
i understand that there must have been an impairment loss of 10k to reduce the cv from 160 to 150k.
pls explain
Ask the Tutor ACCA FR
IFRS 5
10y ago#1I can only imagine that there has been a typing error - maybe it should have been an 8 year life, not a 10 year life.
That would also fit with the answer
whew.. thanks ... this was kaplan by the way
10y ago#3Well, there's a surprise!
Sign into reply to this topic.