Chartered Financial Analyst Level 1
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An analyst gathers the following information about a company's equipment:
Carrying value prior to impairment: €20,000
Undiscounted expected future cash flows: €22,000
Value in use: €17,400
Fair value if sold: €19,100
Costs to sell: €1,900
The carrying value of the equipment should be:
An analyst gathers the following information about a company's equipment: Carrying value prior to impairment: €20,000 Undiscounted expected future cash flows: €22,000 Value in use: €17,400 Fair value if sold: €19,100 Costs to sell: €1,900 The carrying value of the equipment should be:
Exam-Like
A
€17,200 (fair value less costs to sell).
0.0%
B
€17,400 (value in use).
100.0%
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