If the expected value in use of an asset is more than its market value,then it is expected that the entity will retain the asset.

Question

Quizplus · Accepted Answer

If the expected value in use of an asset is more than its market value, it means that the asset is expected to generate higher cash flows than its current selling price. In such a situation, it is economically rational for the entity to retain the asset as it is likely to generate more value for the entity in the long run. Therefore, the statement is true.

If the Expected Value in Use of an Asset Is