Chapter 9 - 3.2 - Disposal Consideration Flashcards
1
Q
What is the disposal consideration usually?
A
The proceeds received for the asset
2
Q
What is the exception to the rule?
A
That market value must be used in the case of a disposal that is not made at arm’s length (market based) e.g a gift
3
Q
How do we get net proceeds?
A
By deducting incidental costs of disposal from the consideration
4
Q
What are some examples of incidental costs?
A
Auctioneer’s fees, estate agent fees and legal costs
