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Under Ind AS 36, an asset's 'recoverable amount' is the:
AHIGHER of fair value less costs of disposal and value in use
BValue in use only
CFair value less costs of disposal only
DLOWER of fair value less costs of disposal and value in use
Answer & Solution
Correct answer: A. HIGHER of fair value less costs of disposal and value in use
Recoverable amount = max(FVLCTS, VIU). The rational decision-maker would recover the asset by whichever route (sale or use) yields more. Impairment is recognised when carrying amount > recoverable amount.
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