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Dear Sir, In the example why we are taking carrying value 15.4? When we are valuing NCA held for sale we are supposed to take the lower of carrying value and fair value less cost to sale. But in the video of example, we are taking carrying value as 15.4 instead of 13.9m. why is this?
It’s a very tricky example
If the company has a policy of revaluation – you have to revalue to FV first
Then move to HFS at lower of:
– Carrying amount – which is now FV
– FVCTS – which is FV less sale costsNormally companies do not have a policy of revaluation…………….so the problem does not arise
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