06-19-2006, 06:10 AM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by insaan</i>
<br />depreciable amt
A.depreciable amt = cost,amount substituted for cost-residual value..
What is meant by amount substituted for cost.give examples.does this
mean carrying amount
Residual Value
B.Residual Value,definition.does this mean Residual Value=Present value of disposal
amount,( i.e amount en entity would obtain from disposal of asset ,after deducting
estimated disposal cost)of residue asset
Recoverable amount
C.Recoverable amount higher of asset's net selling price &
its value in use..what is net selling price..how is it different from
selling price
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Ok
Substituted cost means if you have applied fair value model then cost has no meanings and fair value shall be treated as the substituted cost for the purpose of the definition of depreciable amount.
Residual value shall not be taken as present value of future cash flows relating to disposal this was a treatment of previous standard. Now, the treatment is simple, look for the asset having been passed through the same useful life as ur's and assess its current market value. Assign this value as residual value to ur's.
Net selling price means, net of transaction and other incremental costs.
I will answer your query of IAS 17 in 1-2 days, as I have not even gone through query yet!
ICAPians, the unparalleled..
<br />depreciable amt
A.depreciable amt = cost,amount substituted for cost-residual value..
What is meant by amount substituted for cost.give examples.does this
mean carrying amount
Residual Value
B.Residual Value,definition.does this mean Residual Value=Present value of disposal
amount,( i.e amount en entity would obtain from disposal of asset ,after deducting
estimated disposal cost)of residue asset
Recoverable amount
C.Recoverable amount higher of asset's net selling price &
its value in use..what is net selling price..how is it different from
selling price
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Ok
Substituted cost means if you have applied fair value model then cost has no meanings and fair value shall be treated as the substituted cost for the purpose of the definition of depreciable amount.
Residual value shall not be taken as present value of future cash flows relating to disposal this was a treatment of previous standard. Now, the treatment is simple, look for the asset having been passed through the same useful life as ur's and assess its current market value. Assign this value as residual value to ur's.
Net selling price means, net of transaction and other incremental costs.
I will answer your query of IAS 17 in 1-2 days, as I have not even gone through query yet!
ICAPians, the unparalleled..
