Q32 Formatt (b)(iii) BPP Kit

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February 23, 2019 at 5:26 pm #506337
justine1
Member
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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
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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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