Recoverable amount is defined as:
A)the higher of an asset's fair value less costs to sell and its value in use
B)the lower of an asset's carrying amount and its book value
C)the higher of an asset's carrying amount and its book value
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 defined as the higher of an asset's fair value less costs to sell and its value in use. This concept is used in accounting to assess whether an asset is impaired, meaning its carrying amount may be higher than its recoverable amount.

Recoverable Amount Is Defined As