alleryStart learning →Which is excluded from estimated future cash flows for value in use?
ACash outflows to prepare the asset for use
BOverheads directly attributable to the asset
CIncome tax receipts or payments
DNet disposal proceeds at end of life
Answer & Solution
Correct answer: C. Income tax receipts or payments
Value in use is a pre-tax measure with a pre-tax discount rate, so income tax flows and financing flows are left out.
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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: