It is possible to measure assets in several ways: the possible ways include:
I. cost – an input or entry measure
II. replacement cost – an input or entry measure for a equivalent asset in new condition (an input or entry measure)
III. value in use (present value of future cash flows)
IV. current cost – the cost of replacing the production capacity that an asset had when new (an input or entry measure)
V. fair value less cost to sell
VI. fair value used under revaluation model
-Under AASB 136 the following measures are used to estimate recoverable amount:
A) the total of III and V
B) the greater of III and V
C) III
D) V
Correct Answer:
Verified
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