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Fair market value
What is the difference between fair marker of asset given up Fair market value of asset acquired And carrying amount
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Fair Market value is the market price of the asset acquired and if market price is not determinable then it is the estimated value of the asset. Carrying amount is the amount which is carried down in the balance sheet i.e. the closing balance of the asset. For eg. Acc. to AS-13, Current assets are carried down by their cost or fair value whichever is lower. So, carrying amount will the lower of two.
Fair Market value is the market price of the asset acquired and if market price is not determinable then it is the estimated value of the asset. Carrying amount is the amount which is carried down in the balance sheet i.e. the closing balance of the asset. For eg. Acc. to AS-13, Current assets are carried down by their cost or fair value whichever is lower. So, carrying amount will the lower of two.
Thank you so much.... But could you please say the difference between fair market value of asset acquired and fair market value of asset given up
Thank you so much.... But could you please say the difference between fair market value of asset acquired and fair market value of asset given up
Acquired is the one which is purchased. Given up is the one which is sold/disposed.
