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Q32 Formatt (b)(iii) BPP Kit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Q32 Formatt (b)(iii) BPP Kit

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • February 23, 2019 at 5:26 pm #506337
    justine1
    Member
    • Topics: 13
    • Replies: 11
    • ☆

    Hi Sir,

    The last sentence of the answer says ‘However, an impairment has taken place and, in the circumstances, the recoverable amount would be FVLCTS.’ I’m just lost why it FVLCTS would be chosen when we don’t have any figures. do we automatically choose the FVLCTS over the Value in use because it’s for sale?

    Thanks for your clarification

    March 1, 2019 at 9:00 pm #507060
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7171
    • ☆☆☆☆☆

    Hi,

    As the asset is being under-utilised the value in use would be minimal, and therefore the FVLCTS would be higher.

    Thanks

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