What is the "recoverable amount"?
A)The present value of the future cash flows expected to be derived from an asset.
B)The amount obtainable from the sale of an asset in an arm's-length transaction less the costs of disposal.
C)The higher of an asset's fair value less costs to sell and its value in use.
D)The lower of an asset's fair value less costs to sell and its value in use.

Question

Quizplus · Accepted Answer

The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use. It represents the amount that can be recovered from the asset either through selling it or using it to generate cash flows. A represents the fair value less costs to sell, B represents the amount obtainable from the sale of an asset less the costs of disposal, and D represents the lower of an asset's fair value less costs to sell and its value in use.

What Is the "Recoverable Amount