In an external administration, the net realisable value of the assets is the same as the net fair value used in determining recoverable amount under AASB 136.

Question

Quizplus · Accepted Answer

The net realisable value of assets in an external administration is not necessarily the same as the net fair value used in determining the recoverable amount under AASB 136. Net realisable value refers to the estimated selling price in the ordinary course of business minus the estimated costs of completion and the estimated costs necessary to make the sale, while net fair value under AASB 136 involves assessing the value of an asset in terms of its ability to generate cash flows, considering factors like future use and disposals. These are distinct concepts and can result in different valuations.

In an External Administration, the Net Realisable Value of the Assets