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As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that equipment with a carrying amount
As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that equipment with a carrying amount of $39,000 (cost of $55,000; accumulated depreciation of $16,000) may be impaired due to technological obsolescence. Assume that the asset's value in use is determined to be $33,000 and its fair value less costs of disposal (of $1,200) is $35,000. In addition, the expected future undiscounted net cash flows from the use of the asset and its later disposal are estimated to be $37,000.
As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that equipment with a carrying amount of $39,000 (cost of $55,000; accumulated depreciation of $16,000 ) may be impaired due to technological obsolescence. Assume that the asset's value in use is determined to be $33,000 and its fair value less costs of disposal (of $1,200 ) is $35,000. In addition, the expected future undiscounted net cash flows from the use of the asset and its later disposal are estimated to be $37,000. (a1) Compare the accounting for impairment of the equipment under IFRS versus ASPEStep by Step Solution
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