Woodson Company, a company who uses IFRS reporting standards, has identified a group of plant assets for disposal. On January 1, 2014, the carrying value of these assets was$14.5 million. The assets were revalued to $13.5 million on January 5, 2014, when they were identified as property for the disposal group. In addition, Woodson thinks that it will cost$1.5 million to sell these assets. What carrying amount should these assets reflect foryear-end financial statements to be prepared on January 10, 2014?

Question

Quizplus · Accepted Answer

The carrying amount should be the lower of the carrying value or fair value less costs to sell. The fair value is $13.5 million, and the cost to sell is $1.5 million, so the fair value less costs to sell is $12.0 million.

Woodson Company, a Company Who Uses IFRS Reporting Standards, Has