NON-CURRENT ASSETS I - IAS 16 - PROPERTY PLANT AND EQUIPMENT - DEFINITIONS
3 important questions on NON-CURRENT ASSETS I - IAS 16 - PROPERTY PLANT AND EQUIPMENT - DEFINITIONS
What is an impairment loss?
An impairment loss is the amount by which an asset's carrying amount exceeds its recoverable amount.
Where the recoverable amount is the higher of an assets fair value less costs less costs to sell and it value in use.
Where the recoverable amount is the higher of an assets fair value less costs less costs to sell and it value in use.
What is the residual value?
The residual value is the net amount which the entity expects to obtain for an asset at the end of its useful life after deducting the expected costs of disposal
What is the useful life of an asset?
One of two things:
- The period over which an asset is expected to be available for use b an entity
- the number of production or similar units expected to be obtained from the asset by the entity
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