Under IFRS, value in use of a long-life asset is ________.
A) the greater of its recoverable value or its fair value less cost to sell
B) the lesser of its recoverable value or its fair value less cost to sell
C) the undiscounted future cash flows from use of the asset
D) the discounted future cash flows from use of the asset

Question

Quizplus · Accepted Answer

Under IFRS, the value in use of a long-life asset is the present value of the future cash flows expected to be derived from the asset, which means it is the discounted future cash flows from use of the asset.

Under IFRS, Value in Use of a Long-Life Asset Is