Hello
May I know when we are calculating the value in use of the asset, do we need to consider its selling price in future? If we need to consider it, do we need to discount it based on the discount rate
Example :
Company XYZ has an asset with expected cash inflow of $1000 in next 3 year. Besides, at the end of Year 3, the asset can be sold for $ 50000. Given that the discount rate is at 10%, what is the value in use?
So, may i know do we need to discount the $50000 at 10% to get the value in use?
Thank you
Ask the Tutor ACCA SBR
Value in use calculation - Impairment
Hi,
IAS 36 specifically says that cash flows from its ultimate disposal are included in the value in use calculation.
Thanks
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