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dear sir,
there is this question on the dec 2002 question 2.this leashold asset cost is $30.000.carrying amount at 1oct 2001 is $20.000.its fair value at 1oct is $ 18000 which means it has a deficit of $2000.however,the directors are committed to retain the historic cost for the leashold asset.so the figure that i should include in my statement of financial position is $30.000 right.?but why does the answer incorporate $18000 instead of $30.000?is the answer outdated?because according to ias16,we are allowed to incorporate either the fair value or historic value of the asset in the financial statement as subsequent measurement to initial recognition.Cost is less dep’n and impairment loss. Both fv and cost are 18.
The value at cost (30) less dep’n (10) to date and the impairment loss of 2, this is 18.
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