Statement 1: It is not always necessary to identify both fair value less cost to sell and value in use. Only when fair value less cost to sell is not greater than the carrying amount, then value in use calculation is required. Statement 2: IAS 36 is not applicable to financial assets, particularly those that are classified as investments in subsidiaries, joint ventures and associates. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. Both statements are incorrect.
Statement 1: It is not always necessary to identify both fair value less cost to sell and value in use. Only when fair value less cost to sell is not greater than the carrying amount, then value in use calculation is required. Statement 2: IAS 36 is not applicable to financial assets, particularly those that are classified as investments in subsidiaries, joint ventures and associates. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. Both statements are incorrect.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Statement 1: It is not always necessary to identify both fair value less cost to sell and value in use. Only when fair value less cost to sell is not greater than the carrying amount, then value in use calculation is required. Statement 2: IAS 36 is not applicable to financial assets, particularly those that are classified as investments in subsidiaries, joint ventures and associates.
Only Statement 1 is correct.
Only Statement 2 is correct.
Both statements are correct.
Both statements are incorrect.
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