Land and buildings may be valued at:
A) recoverable amount.
B) opportunity cost.
C) fair value.
D) recoverable amount or fair value.

Question

Quizplus · Accepted Answer

Land and buildings can be valued at either recoverable amount or fair value, depending on the accounting policies adopted by the entity and the applicable accounting standards. Recoverable amount is the higher of an asset's fair value less costs of disposal and its value in use. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.

Land and Buildings May Be Valued At