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An asset's recoverable amount is equal to:

a. The lower of the asset's fair value less costs to sell and its value in use b. The lower of the asset's value in use and its carrying amount c. The higher of the asset's value in use and its carrying amount d. The higher of the asset's fair value less costs to sell and its value in use

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Question added by Deleted user
Date Posted: 2013/08/28
Hassan Abbas awan
by Hassan Abbas awan , Senior Accountant , Green Valley premium hyper maket

d. The higher of the asset's fair value less costs to sell and its value in use

Aziz ur Rehman ur Rehman
by Aziz ur Rehman ur Rehman , Assistant Manager Finance , Central Power Puchasing Agency (CPPA)

d. The higher of the asset's fair value less costs to sell and its value in use

Musa Muhammad Dandikko
by Musa Muhammad Dandikko , Chief Accountant, Acting Director, Procurement , Federal College of Education, Katsina

b. The lower of the asset's value in use and its carrying amount

Prince Ninan
by Prince Ninan , Audit Executive , Lewis & Pecker

 The lower of the asset's value in use and its carrying amount

Yasir Ammar Mehmood
by Yasir Ammar Mehmood , Senior Accountant , Al-Mustufa Medical Centre

d. The higher of the asset's fair value less costs to sell and its value in use.

Reason:

This is simply the definition of the terms used in IAS-16 "Property, Plant and Equipment"

 

makomborero chakoreka
by makomborero chakoreka , Project Accountant , ADSO LLC

D.

Nazmul Islam CMA
by Nazmul Islam CMA , Manager , Robi Axiatal Ltd.

The formula of an asset's recoverable value is :

Current market sale proceed minus selling or disposal expenses.

 

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

The Answer D