The Whistler Company accounts for its property, plant and equipment using the cost model.On 30 October 20X7 Whistler classified an item of property, plant and equipment as held for sale inaccordance with IFRS5, Non-current assets held for sale and discontinued operations. At that date theasset's carrying amount was CU20,000, its fair value was estimated at CU17,000 and the costs to sell atCU2,000.The value in use from the continued use of the asset if it was not sold was estimated at CU13,000. Theasset has not yet been sold.In accordance with IFRS5, at what amount should the asset be stated in Whistler's statement of financialposition at 31 December 20X7?CU13,000CU15,000CU17,000CU20,000

IFRS 5 is the guideline which has been given so that the accounting methods of the assets which has…

Answered: In accordance with IFRS5, at what…

In accordance with IFRS5, at what amount should the asset be stated in Whistler's statement of financial position at 31 December 20X7?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The Whistler Company accounts for its property, plant and equipment using the cost model.
On 30 October 20X7 Whistler classified an item of property, plant and equipment as held for sale in
accordance with IFRS5, Non-current assets held for sale and discontinued operations. At that date the
asset's carrying amount was CU20,000, its fair value was estimated at CU17,000 and the costs to sell at
CU2,000.
The value in use from the continued use of the asset if it was not sold was estimated at CU13,000. The
asset has not yet been sold.
In accordance with IFRS5, at what amount should the asset be stated in Whistler's statement of financial
position at 31 December 20X7?
CU13,000
CU15,000
CU17,000
CU20,000

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