As 28

what if value in use is zero in case of an asset....what should be the recoverable value....whether we have to consider net selling price ???
Replies (1)

Dear sourabh,

In case of an asset if the value in use is zero , it means there are no estimated future cashflows arising from the use of that asset and there is no residual price at the end of its useful life. In that case, the selling price would also be less. As per AS 28, recoverable amount of an asset is higher of Net selling price or Value in use. If the value in use is zero and asset has any selling price, then consider Net selling price as recoverable amount.

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