Question 6.22: An assembly line of a car manufacturer, costing 1 million le...

Financial Accounting An IFRS Perspective in Romania

An assembly line of a car manufacturer, costing 1 million lei, depreciated straight-line for 10 years and tested for impairment by the end of year 5. At that moment, the fair value of the assembly line is 300,000 lei and the value in use is 390,000 lei.

Is the asset impaired? What is the Balance Sheet disclosure amount at the end of year 5?

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