What is "value in use"?
A)The present value of the future cash flows expected to be derived from an asset.
B)The amount obtainable from the sale of an asset in an arm's-length transaction less the costs of disposal.
C)The higher of an asset's fair value less costs to sell and its value in use.
D)The lower of an asset's fair value less costs to sell and its value in use.

Question

Quizplus · Accepted Answer

Value in use is the present value of the future cash flows expected to be derived from an asset. This is also known as the asset's value to the owner. It is calculated by estimating the future cash inflows that the asset is expected to generate, and then discounting them back to their present value using an appropriate discount rate.

What Is "Value in Use