Page 80 - SBR Integrated Workbook STUDENT S18-J19
P. 80
Chapter 5
Example 7
Held for sale
Two years ago, Music invested heavily in video cameras that are capable of
recording three dimensional (3D) video. However, consumer uptake of 3D
technology has been slower than expected and the video cameras are heavily
under-utilised. On 1 June 20X6, the directors of Music took the decision to sell
these assets and immediately started advertising them for sale at their market
value. Music has used the video cameras since advertising them for sale and
will continue to do so until the agreed disposal date. This usage is expected to
be minimal and is unlikely to impact the condition of the cameras. By the
reporting date, three potential buyers had expressed interest in the video
cameras.
The directors of Music require advice about the correct accounting
treatment of the 3D video cameras in the year ended 30 June 20X6.
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