rkapoor

I am confused about this question too -- but for a different reason.

In the Elan guides it says that an asset is impaired under IFRS when its carrying amount is more than the higher of (fair value - costs to sell) and "value in use", where value in use means the discounted value of future cash flows expected from the asset.

but in the question they give you a figure for "value in use" AND a different figure for the present value of cash flows.

Should I assume from this that if you're given "value in use", you use that, and if not, you use the present value?

-- vitalstrike, you are getting confused between IFRS and GAAP -- undiscounted cash flows are considered under GAAP only. IFRS looks at the higher of (fair value - costs to sell) and "value in use", as written above.