alleryStart learning →Value in use involves which two steps?
AEstimating cash flows and discounting them
BFinding market price less disposal costs
CFinding cost less accumulated depreciation
DFinding scrap value plus revaluation surplus
Answer & Solution
Correct answer: A. Estimating cash flows and discounting them
Value in use is a present value, so one must forecast cash inflows and outflows and then discount them at an appropriate rate.
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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: