alleryStart learning →Value in use of an asset is:
APresent value of expected use cash flows
BSale amount less costs of disposal
CCost less accumulated depreciation
DReplacement cost in the open market
Answer & Solution
Correct answer: A. Present value of expected use cash flows
Value in use discounts the cash flows expected from continuing use plus the final disposal proceeds, so it is an entity-specific present value.
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Related questions
An enterprise applying AS 17 discloses impairment losses by:A revalued asset's market value basis and negligible disposal costs mean the asset is:For a small and medium-sized company, value in use may be measured by:Impairment of deferred tax assets is dealt with under:Disclosing key assumptions is:If recoverable amount is value in use, a material loss disclosure includes:A class of assets under AS 28 means a grouping of assets of:AS 28 disclosures of impairment losses are required for each: