Value in use of a long-life asset is ________.
A)the greater of its recoverable value or its fair value less cost to sell
B)the lesser of its recoverable value or its fair value less cost to sell
C)the undiscounted cash flows from use of the asset
D)the discounted cash flows from use of the asset

Question

Quizplus · Accepted Answer

Value in use is the present value of the future cash flows expected to be derived from an asset, which means it is calculated using discounted cash flows.

Value in Use of a Long-Life Asset Is ________