02-14-2011, 02:24 AM
Salam to all.
Dear Mr Umer, i would like to tell you that when a co. decides to purchase an asset, it makes a budget known as Capital Budget. in that, the co. estimates the VIU & all the related probs. so its certain that when an asset is purchased, a co. has estimated VIU of that asset. the co. will compare VIU with FMV less Cost to sell & take higher one as RA.
compare RA & BV & proceed................
the basic point is that VIU is estimated before an asset is purchased...
n one more thing, why will a co. purchased an asset & then doesn't use that for next 3years?
any ground reasons?
Dear Mr Umer, i would like to tell you that when a co. decides to purchase an asset, it makes a budget known as Capital Budget. in that, the co. estimates the VIU & all the related probs. so its certain that when an asset is purchased, a co. has estimated VIU of that asset. the co. will compare VIU with FMV less Cost to sell & take higher one as RA.
compare RA & BV & proceed................
the basic point is that VIU is estimated before an asset is purchased...
n one more thing, why will a co. purchased an asset & then doesn't use that for next 3years?
any ground reasons?
