There is wide agreement that the soundest measure,conceptually,of value-in-use is:
A) historical cost less accumulated depreciation
B) the estimated net market value if the asset was sold in the ordinary course of business
C) deprival value
D) the discounted value of the asset's future cash flows

Question

Quizplus · Accepted Answer

The discounted value of the asset's future cash flows is considered the soundest measure of value-in-use because it takes into account the future economic benefits that the asset is expected to generate. Therefore, it reflects the asset's true value to the business. Historical cost less accumulated depreciation is not relevant to determining the value-in-use, as it only reflects the cost of the asset in the past. The estimated net market value if the asset was sold in the ordinary course of business may be useful in certain cases, but it does not account for the specific needs and circumstances of the business. Deprival value is a theoretical concept that assumes the business is deprived of the asset and must find a replacement, which may not always be practical or relevant in practice.

There Is Wide Agreement That the Soundest Measure,conceptually,of Value-In-Use Is