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value in use

This topic has 1 reply, 2 voices, and was last updated 1 year ago by Kim Smith.

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November 28, 2021 at 2:40 am #641825
Noah098
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Maam when calculating Value in Use, we are neither allowed to include revenue expenditure nor capital expenditure?
For eg. any revenue expenditure incurred to restore the asset to its original condition(after damage) is not allowed? I understand that capital expenditure incurred to increase the useful life of the asset or productivity of the asset are not allowed.
November 28, 2021 at 8:40 am #641835
Kim Smith
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You can’t include any further expenditure regardless of how it is accounted for – if only revenue/capital expense excluded you could include the cost of major repairs and renewals that didn’t qualify to be accounted for as a major overhaul, for example.
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