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AS 10

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please explain why PRESENT VALUE of cost of decommissioning, restoration is taken instead of actual value
Replies (2)
Yes PV is to be taken as for calculation impairment present value should be shown as on the year of impairment of PPE

That is the future value measurement and one must discount it to know the present value.

VIU during impairment also discounts all future CGU Cashflows using a pre tax discount rate to know the recoverable amount while testing for impairment, 

Mostly it’s like rule of thumb that accounting numbers will be in historic cost or it’s fair value in PV terms.


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