Hi sir, may I knw if the historical cost machine is 50k and residual value is 20k and useful life 5 years. To replace the machine with a new version would cost 70k and residual value is 30k and useful life is 4 years.
When we calculate the value in use, for the residual value I have to use 20k or 30k?
Thanks sir
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Value in use
6y ago#1Hi,
The residual value is an estimate so any changes in the estimate are dealt with prospectively, and so you would work the deprecation based on the new residual value of 30k.
Thanks
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