Question

When a private company is reporting under ASPE, and under the going concern assumption, the company...

When a private company is reporting under ASPE, and under the going concern assumption, the company will be reporting their equipment assets at

original cost.

net realizable value.

original cost less accumulated depreciation.

undepreciated capital cost.
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Answer #1

OPTION - Original Cost less Accumulated Depreciation.

When a private company is reporting under ASPE, and under the going concern assumption, the company will be reporting their equipment assets at Original Cost less Accumulated Depreciation.

If the going concern assumption is not followed then, Net realisable value is followed.

If Accumulated Depreciation is maintained separately then Original Cost is followed.

On tax basis this method is followed like Cost less Capital Cost Allowances is followed.

If you have any doubts please comment on the answer.

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