alleryStart learning →Under AS 28, recoverable amount of an asset is:
ALower of net selling price and value in use
BHigher of net selling price and value in use
CAverage of net selling price and value in use
DNet selling price reduced by carrying amount
Answer & Solution
Correct answer: B. Higher of net selling price and value in use
Recoverable amount is defined as the higher of net selling price and value in use, because an enterprise would recover the better of selling or using the asset.
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Related questions
An enterprise applying AS 17 discloses impairment losses by:A revalued asset's market value basis and negligible disposal costs mean the asset is:For a small and medium-sized company, value in use may be measured by:Impairment of deferred tax assets is dealt with under:Disclosing key assumptions is:If recoverable amount is value in use, a material loss disclosure includes:A class of assets under AS 28 means a grouping of assets of:AS 28 disclosures of impairment losses are required for each: