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Fakher Company, purchased a building on 1st May 2016 for AED 658,000. The building is depreciated using Straight line method over 20 years with AED
Fakher Company, purchased a building on 1st May 2016 for AED 658,000. The building is depreciated using Straight line method over 20 years with AED 8,000 salvage value. In 2020 an earthquake has damaged the first floor of the building, so indications revealed the need for impairment test on 31-12-2020. Present value of future cash flows from using the building will be AED 500,000. The company consulted professional experts for fair value determination. The expert found that the building might be sold for AED 505,000. The professional experts charged AED 1,500 for providing this valuation. But the sale will cost the company AED 10,000
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