Explain Why Non-Current Assets Held for Sale Are Recorded at the Lower

question 90

Essay

Explain why non-current assets held for sale are recorded at the lower of carrying value and fair value less costs to sell.

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Definitions:

Raw Materials

Basic materials that are used in the production of goods, finished products, or intermediate materials that are feedstock for future finished products.

Cheap Labor

The employment of workers at wages that are considered lower than the norm for their industry or region.

Regionalization

Regionalization is the division of the world into different and often competing economic, political, and cultural areas.

European Union

A political and economic union of 27 European countries that are tied by a single market and a variety of policies aiming at ensuring freedom, security, and justice.