Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. equipment, which is classified as property, plant

equipment, which is classified as property, plant and equipment(IAS 16) and measured using the cost...

90.2K

Verified Solution

Question

Accounting

equipment, which is classified as property, plant and equipment(IAS 16) and measured using the cost model, is to be transferred to the'held for sale' classification. It has a cost of $242 000 and its accumulated depreciation to date of transfer $48 400. This asset has never been impaired. On the date of transfer: the fair value is $169 400 with estimated costs to sell of $12 100, and the value in use is $172 240. The impairment consequences are as follows: a) the asset is impaired in terms of IAS 36 impairement of assets but is not impaired in terms of IFRS 5 non current assets held for sale and discontinued operations. b) the asset is impaired in terms of both IAS 36 impairment of assets and IFRS 5 non current assets held for sale and discontinued operations.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students