Recoverable amount
The higher of two figures: what the asset will bring in through use, and what it would sell for less the costs of selling.
How to read the number
The threshold below which carrying value must be written down. That comparison is the impairment test itself.
When the metric lies
Value in use is calculated from the company's own internal forecast — and the softer of the two estimates is usually the one that decides.
Also known as: value in use