If the carrying value of a fixed asset is USD 2,500, and its value in use is

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If the carrying value of a fixed asset is USD 2,500, and its value in use is USD 2,200, which of the following is false? (Note: value-inuse is greater than its fair value less cost to sell)

a. USD 2,200 is the recoverable amount of the asset.

b. Impairment of USD 300 would be charged.

c. A loss of USD 300 would be charged in the next accounting period.

d. The recoverable amount is less than the carrying value of the asset.

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Related Book For answer-question

Financial Reporting For Islamic Financial Institutions Accounting Standards Interpretation And Application

ISBN: 9781032464022

1st Edition

Authors: Abdul Rauf Mahar, Ayesha Bhatti, Muhammad Junaid Ashraf, Asfand Zubair Malik

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Question Posted: Mar 11, 2024 03:20 AM

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If the carrying value of a fixed asset is USD 2,500, and its value in use is

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Financial Reporting For Islamic Financial Institutions Accounting Standards Interpretation And Application

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