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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › impairment loss
hi mike
it is mentioned that the an impairment loss may not reduce the carrying amount below the highest of
fair value less costs to sell
value in use
zero
in the follwing question
multiplex acquired the steams days and the sofp shows the fair value of assets
goodwill 200
operating licence 1200
property 300
rail track 300
two engines 1000
__________
3000
__________
the engine exploded and the value in use of business was 2000. the carrying amounts of property and rail track are based on value in use and engines are valued at net selling price
when they are apportioning the loss, they apportion it below the fair values, but doesnt that contradict with the statement made before?
How is “fair value less costs to sell” the same as “fair value”?