If an abandoned asset's recoverable value increases subsequent to abandonment, the asset may be written up to a maximum of the asset's original carrying value.

Question

Quizplus · Accepted Answer

According to accounting standards, if the recoverable value of an abandoned asset increases after abandonment, the asset can be written up to the max of its original carrying value. This is because the original carrying value was based on the asset's initial cost and any subsequent increase in recoverable value should not lead to a gain in profit or loss.

If an Abandoned Asset's Recoverable Value Increases Subsequent to Abandonment