Hi Tutor,
Thanks for the class. Please, I am not sure why we have used 15.4 as the carrying amount instead of 13.9 and then subtracted the expense to get the fair value amount
Please clarify
Ask the Tutor ACCA SBR
IFRS 5- Carrying value
8mo ago#1Company has a policy of revaluation.
IFRS 5 requires that, if the policy is revaluation, you must:
1. Revalue to FV at date of classification as HFS.
2. Compare FV with FV less costs to sell - resultant loss to P&L
Impact is that selling costs will go to P&L.
Very irritating rule but we are stuck with it.
:)
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