New FLASH SALE Dhamaka - Flat 60% Off on All Courses

    Question

    A Ltd owns land and building which are carried in its

    balance sheet at an aggregate carrying amount of 10 million. The fair value of such asset is 15 million. It exchanges the land and building for a private jet, which has a fair value of ₹20 million, and pays an additional 3 million in cash. As per Ind AS 16 what should be the cost?
    A 10 million Correct Answer Incorrect Answer
    B 15 million Correct Answer Incorrect Answer
    C 18 million Correct Answer Incorrect Answer
    D 20 million Correct Answer Incorrect Answer

    Solution

    Fair value of the asset given up is used to measure the cost of the asset received unless the fair value of the asset received is more clearly evident.

    Practice Next