A logistics warehouse used by Pellion for its own deliveries is carried at 1,300,000. According to an IFRS 13 valuation given as a datum, it could be sold for 1,240,000, with costs of disposal of 40,000. The cash flows expected from its use result in a value in use of 1,260,000. Calculate fair value less costs of disposal and the recoverable amount of the warehouse.
- Carrying amount of the warehouse
- 1,300,000
- Fair value (IFRS 13, given)
- 1,240,000
- Costs of disposal
- 40,000
- Value in use
- 1,260,000