The recoverable amount of an asset is:
A)its fair value
B)its value in use
C)the greater of its value in use and its net fair value (fair value less cost to sell)
D)its net fair value (fair value less cost to sell)

Question

Quizplus · Accepted Answer

The recoverable amount of an asset is the greater of its value in use and its net fair value (fair value less cost to sell). This means that the asset should be valued based on the higher value between its current market value (net fair value) and its expected future cash flows (value in use).

The Recoverable Amount of an Asset Is