Under IFRS, the recoverable amount of an asset is The higher of an asset’s value in use or its fair value minus costs to sell. The estimated selling price in the ordinary course of business minus the estimated costs of completion and the estimated costs necessary to make the sale. The present value of the future cash flows expected to be derived from an asset. The amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, minus the costs of disposal.

Impairment of an asset: Impairment is the loss that occurs due to, unexpected decrease in the market…

Answered: Under IFRS, the recoverable amount of…

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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Under IFRS, the recoverable amount of an asset is

		The higher of an asset’s value in use or its fair value minus costs to sell.
		The estimated selling price in the ordinary course of business minus the estimated costs of completion and the estimated costs necessary to make the sale.
		The present value of the future cash flows expected to be derived from an asset.
		The amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, minus the costs of disposal.

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