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What is the recoverable amount of an asset?

Accounting Auditing Financial Reporting Economics
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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/04/25
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Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

As defined by IAS Thirty Six

 

Recoverable amount is the HIGHER of an asset's

 

Fair value less costs of disposal and

Value in use.

 

Here Value in use is the present value of the future cash flows expected to be derived from an asset.

 

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