As per AASB 136 Impairment of Assets, the recoverable amount test requires an entity to compare the fair value of an asset less costs to sell, with:

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The recoverable amount test requires an entity to compare the fair value of an asset less costs to sell with its value in use. The value in use is the present value of the future cash flows expected to be derived from an asset or cash generating unit. It reflects the entity's estimate of the future economic benefits that the asset will generate. The disposal value (choice A), amount obtainable from the sale of the asset (choice C), and costs directly attributable to the liquidation of the asset (choice D) are not relevant for this test.

As Per AASB 136 Impairment of Assets, the Recoverable Amount