When evaluating whether an asset has been impaired, the carrying amount of the asset must be compared to recoverable amount. Recoverable amount is the higher of:
A) initial cost: and, fair value;
B) fair value less costs to sell: and, value in use;
C) original cost: and, net present value;
D) value in use: and, original cost.

Question

Quizplus · Accepted Answer

Recoverable amount is the higher of fair value less costs to sell and value in use. This is in accordance with IAS 36 Impairment of Assets.

When Evaluating Whether an Asset Has Been Impaired, the Carrying