alleryStart learning →What residual value does AS 26 normally assume for an intangible asset?
AScrap value estimate
BNil, absent a buy-back
CTen percent of cost
DFive percent of cost
Answer & Solution
Correct answer: B. Nil, absent a buy-back
Unless a third party is committed to buy it or an active market gives a reliable value, the residual value is taken as nil.
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