EmmaTee
12-11-04, 01:00
Am I right in thinking that the 'recoverable amount' of a fixed asset is 'the higher of net realisable value and value in use'?<BR><BR>Not sure if I'm just having a blonde moment but how do the following work out in that case:<BR><BR>Net Realisable Value <BR>12,000<BR>18,000<BR>7,000<BR><BR>Value in use<BR>10,000<BR>19,000<BR>13,000<BR><BR>Recoverable amount<BR>14,000<BR>17,500<BR>12,000<BR><BR><BR>I would have thought the recoverable amounts were 12,000, 19,000 and 13,000 respectively.....<BR><BR>If anyone could clear this up for me I'd really appreciate it!<BR><BR>Thanks in advance<BR>Emma