A non-current asset has a carrying amount of GHS 20,000. It could be sold for GHS 18,500 with selling costs of GHS 500. Its value in use is GHS 22,000 and its replacement cost GHS 50,000. According to IAS 36 Impairment of Assets, what is the recoverable amount of this asset?

A non-current asset has a carrying amount of GHS 20,000. It could be sold for GHS 18,500 with selling costs of GHS 500. Its value in use is GHS 22,000 and its replacement cost GHS 50,000. According to IAS 36 Impairment of Assets, what is the recoverable amount of this asset?

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

A non-current asset has a carrying amount of GHS 20,000. It could be sold for GHS 18,500 with selling costs of GHS 500. Its value in use is GHS 22,000 and its replacement cost GHS 50,000.

According to IAS 36 Impairment of Assets, what is the recoverable amount of this asset?

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