Recoverable amount: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Expand definition.) |
||
| (One intermediate revision by the same user not shown) | |||
| Line 2: | Line 2: | ||
The higher of fair value less costs of disposal and value in use. | 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. | |||
| Line 10: | Line 26: | ||
* [[Impairment]] | * [[Impairment]] | ||
* [[Value in use]] | * [[Value in use]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 15:36, 9 September 2020
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.
