Exchange-for-value system and Recoverable amount: Difference between pages

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.

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-A system dealing with two-way exchanges of assets, often including money.
+''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.
-Contrasted with funds transfer systems, which generally deal with one-way transfers of money only.
 == See also ==
-* [[Assured payment system]]
+* [[Carrying value]]
-* [[Credit risk]]
+* [[Fair value]]
-* [[Funds transfer system]]
+* [[IAS 36]]
-* [[Transfer system]]
+* [[Impairment]]
+* [[Value in use]]
+[[Category:Accounting,_tax_and_regulation]]