Recoverable amount: Difference between revisions
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imported>Doug Williamson (Create page. Source: IAS 36.) |
imported>Doug Williamson (Expand definition.) |
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The higher of fair value less costs of disposal and value in use. | The higher of fair value less costs of disposal and value in use. | ||
Recoverable amount is a figure that recognises we have a choice about what to do with an asset. | |||
We can either: | |||
(1) Sell it; or | |||
(2) Carrying on using it. | |||
Rationally, we would always make the choice that results in the greater value for the business. | |||
== See also == | == See also == | ||
* [[Carrying value]] | |||
* [[Fair value]] | * [[Fair value]] | ||
* [[IAS 36]] | |||
* [[Impairment]] | * [[Impairment]] | ||
* [[Value in use]] | * [[Value in use]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 15:36, 9 September 2020
Financial reporting - impairment
The higher of fair value less costs of disposal and value in use.
Recoverable amount is a figure that recognises we have a choice about what to do with an asset.
We can either:
(1) Sell it; or
(2) Carrying on using it.
Rationally, we would always make the choice that results in the greater value for the business.
