According to IAS 36 the recoverable amount of an asset or cash-generating unit is the:
A)lower of its fair value less costs of disposal and its value in use.
B)lower of its fair value plus costs of disposal and its value in use.
C)higher of its fair value less costs of disposal and its value in use.
D)higher of its fair value plus costs of disposal and its value in use.

Question

Quizplus · Accepted Answer

The recoverable amount is the higher of an asset's fair value less costs of disposal and its value in use, as per IAS 36.

According to IAS 36 the Recoverable Amount of an Asset