Question
Bulla Ltd uses the cost model for its buildings. The carrying amount of the buildings as at 30 June 2020 is $400,000. Bulla Ltd conducted
Bulla Ltd uses the cost model for its buildings. The carrying amount of the buildings as at 30 June 2020 is $400,000. Bulla Ltd conducted further tests and below is the information obtained from those tests:
Fair value: $430,000
Cost of disposal: $30,000
Value in use: $410,000
Bulla Ltd has no prior recognition of any impairment loss.
Considering the above information, calculate the new carrying amount of the buildings on 30 June 2020.
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According to accounting standards if the carrying amount of an asset exceeds ...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
