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Forums › ACCA Forums › ACCA FR Financial Reporting Forums › impairment loss
what is the difference between fair value & carrying value?
Fair value of am asset is the amount that an asset could be sold for in “an orderly transaction between market participants at the measurement date”.The carrying amount is the amount at which the asset is recorded in statement of financial position.Often this amount will be historical cost less accumulated depreciation and any previous impairment losses on asset.
