Hello
My question is, in accordance with IFRS 5 the value for an asset held for sale should be the lower of:
1.its fair value less costs to sell (FVLCTS)
2.value in use (VIU)
However in the answer the comparison is being made between the FVLCTS and the historic cost less depreciation. Please advise.
Link to question:
https://www.accaglobal.com/content/dam/acca/global/PDF-students/2012/p2int_2007_dec_q.pdf
Link to answer:
https://www.accaglobal.com/content/dam/acca/global/PDF-students/2012/p2int_2007_dec_a.pdf
Regards
Ask the Tutor ACCA SBR
Q3a - December 2007
10y ago#1Hi,
IFRS 5 states that the asset is classified as held for sale at the lower of its carrying value and the fair value less costs to sell.
I think you're getting confused with IAS 36 and impairments.
Thanks
ok, thanks for clearing that up.
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