Mohan purchased a machinery amounting 10,00,000 on 1st April, 2001. On 31st March, 2019, similar machinery could be purchased for 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as ₹ 12,00,000.
The current cost of the machinery is
Book value of machinery on 31st March, 2019
Market value as on 31st March, 2019 if sold As on 31st March, 2019, if the company values the machinery at 11,00,000, following valuation principle is being followed?
Mohan purchased a machinery amounting 10,00,000 on 1st April, 2001. On 31st March, 2019, similar machinery could be purchased for 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as ₹ 12,00,000.
The present value of machinery is
Measurement discipline deals with
All of the following are valuation principles except
