Recoverable amount: Difference between revisions

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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.





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.



See also