Carrying amount under Historic Cost is calculated:
Historic Cost
Carrying amount CA = Cost – Accumulated Depreciation
Dep’n = (Cost - Residual value) / expected life
Test yourself on these notes:
Carrying amount CA = Cost – Accumulated Depreciation
Dep’n = (Cost - Residual value) / expected life
= the price that would be received to sell an asset or paid to transfer a liability
The amount that would have to be paid if the same or an equivalent asset was acquired currently.
Carrying amount CA = Current Cost – Accumulated Depreciation
Dep’n = (Current Cost - Residual value) / expected life
The present discounted value of the future net cash inflows that the item is expected to generate.