In calculating the value in use of the asset $214600, the present values were computed as at 1 April 2014. However, both the fair value less costs to sell and the carrying amount of the asset are measured as at 31 March 2015. Are we not suppossed to calculate a new value in use using the remaining two cash flows since the other year has already lapsed?
Please assist me.
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JUNE 2015 MCQ QN 4
10y ago#1This question worried me when I first saw it 2 years ago
I ignored it and hoped that it would go away
And it did go away until .....
..... you brought it back :-(
And it still worries me because, like you, I find that I'm comparing value in use as calculated in 2014 with net selling price as identified in 2015
So, unusually, I've asked advice from our F3 maestro, John Moffat and he agrees with me that the dates used by the examiner appear to be incorrect
I suggest that you work on the question as though the net selling price was as at 31 March, 2014
Apologies if that's unsatisfactory but it's the best I can do!
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