Hydrostal, a power plant operator, is putting a standby turbine up for sale; its fair value under IFRS 13 is 1,240,000 (given). To complete the deal, it will have to pay 18,000 of transfer duties, pay 9,500 to a law firm and incur 22,500 of overhaul directly needed to deliver the turbine in saleable condition. An expert report on the turbine, invoiced 6,000, is already included in trade payables. Finally, Hydrostal plans 40,000 of reorganisation of its teams after the sale. Calculate the fair value less costs of disposal.
- Fair value of the turbine (IFRS 13, given)
- 1,240,000
- Transfer duties
- 18,000
- Law firm fees
- 9,500
- Overhaul to bring into saleable condition
- 22,500
- Expert report already in trade payables
- 6,000
- Reorganisation after the sale
- 40,000