IndigoLearn

Forums

Fair market value

What is the difference between fair marker of asset given up Fair market value of asset acquired And carrying amount


Sai Teja

Sai Teja

CA Inter

12K+

22-Feb-21 20:16

17

Answers (3)

Best Answer

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.


Ishika Goel 282

Ishika Goel 282

CA Inter

2K+

23-Feb-21 00:53

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.


Suraj Lakhotia

Suraj Lakhotia

Admin

23-Feb-21 11:38