Recoverable amount
From ACT Wiki
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.
