02-13-2011, 01:48 AM
Dear Both!
AOA
As i understand as per IAS -36 Recoverable amounts is those which ever is higher (FV Less cost to sell or Value in use). on this basis i would like to understand the following query.
Dear Mr. Dard.
As u post that Impairment loss is the excess of CV over the assets value in use. My question is that if the asset is not yet used in the company so it has no any vale in use.Mence company has not yet decided the plan of production of subsequent 3 years. so the assets has not any value in use.
So, How can we test this assets for impairment????
Can we compare the CV with FV less cost of disposal? i Understand that it is best way because asset is trade in market.
Plx comments
Regards
Umar
AOA
As i understand as per IAS -36 Recoverable amounts is those which ever is higher (FV Less cost to sell or Value in use). on this basis i would like to understand the following query.
Dear Mr. Dard.
As u post that Impairment loss is the excess of CV over the assets value in use. My question is that if the asset is not yet used in the company so it has no any vale in use.Mence company has not yet decided the plan of production of subsequent 3 years. so the assets has not any value in use.
So, How can we test this assets for impairment????
Can we compare the CV with FV less cost of disposal? i Understand that it is best way because asset is trade in market.
Plx comments
Regards
Umar
