According to AASB 136 Impairment of Assets,the recoverable amount of an asset or cash-generating asset is the:
A)lower of its fair value less costs of disposal and its value in use.
B)higher of its fair value less costs of disposal and its value in exchange.
C)lower of its fair value less costs of disposal and its value in exchange.
D)higher of its fair value less costs of disposal and its value in use.

Question

Quizplus · Accepted Answer

The recoverable amount is defined as the higher of an asset's fair value less costs of disposal and its value in use according to AASB 136.

According to AASB 136 Impairment of Assets,the Recoverable Amount of an Asset