Recoverable amount

From ACT Wiki
Jump to navigationJump to search

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