A non-current asset,for example,a building,has the following information available for valuation at balance date:
Depreciable amount $50 000
Accumulated depreciation $10 000
Residual value $5 000
Recoverable amount $35 000
Value in use $80 000
Which amount should be the carrying amount of this asset at balance date?

Question

Quizplus · Accepted Answer

The carrying amount of an asset is the lower of its recoverable amount and its carrying amount before impairment. The recoverable amount is $35,000, which is lower than the carrying amount before impairment ($50,000 - $10,000 = $40,000). Therefore, the carrying amount should be $35,000.

A Non-Current Asset,for Example,a Building,has the Following Information Available for Valuation