• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Q Scramble – Intangible Assets

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Q Scramble – Intangible Assets

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by Stephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 4, 2021 at 6:11 pm #619664
    jareerabedin
    Member
    • Topics: 91
    • Replies: 72
    • ☆☆

    Sir in this question, they say that the company estimates value in use by using the expected cash flows.

    In the answer they say that “cash flows used by scramble for the purposes of impairment do not comply with IAS 36”.

    Sir how else am I supposed to calculate value in use? As per my understanding, value in use is calculated always buy discounting the expected future cash flows from the asset to present value.

    But the answer in the revision kit says it’s wrong. Please help

    May 5, 2021 at 11:04 am #619739
    Stephen Widberg
    Keymaster
    • Topics: 11
    • Replies: 2837
    • ☆☆☆☆☆

    The method is right but the discount rate is wrong. Should be discount rate reflecting:

    1. Time value of money
    2. Risk of assets.

    As opposed to something strange that the company is trying to use.

    May 5, 2021 at 5:57 pm #619784
    jareerabedin
    Member
    • Topics: 91
    • Replies: 72
    • ☆☆

    Thank you sir!!! I thought the same as well!!
    Thank you

    May 6, 2021 at 11:07 am #619858
    Stephen Widberg
    Keymaster
    • Topics: 11
    • Replies: 2837
    • ☆☆☆☆☆

    My pleasure.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • jcacca15 on PPE – revaluation upwards – ACCA Financial Reporting (FR)
  • jcacca15 on PPE – Introduction – ACCA Financial Reporting (FR)
  • jcacca15 on PPE – Introduction – ACCA Financial Reporting (FR)
  • shazleen on ACCA AB Chapter 10 – Management – Questions
  • John Moffat on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy