Which of the following items are required to calculate 'value in use' of an asset?
A) exit and entry prices
B) purchase price and cost of disposal
C) estimated net future cash flows and appropriate discount rate
D) estimated net future cash flows

Question

Quizplus · Accepted Answer

To calculate 'value in use' of an asset, one needs to estimate net future cash flows, which should be discounted at an appropriate discount rate to account for time value of money. Therefore, estimated net future cash flows and an appropriate discount rate are required, whereas exit and entry prices and purchase price and cost of disposal are not relevant to the calculation of 'value in use'.

Which of the Following Items Are Required to Calculate 'Value