Value in use
Value in use is the present value of future cash flows expected to be derived from an asset or cash-generating unit, determined under IAS 36 requirements. It is compared with fair value less costs of disposal when determining recoverable amount.
Worked example
A cash-generating unit’s discounted future cash flows give a value in use of 110; fair value less disposal costs is 90, so recoverable amount is 110.
Common mistake
Do not confuse value in use with revenue, undiscounted cash flows or recoverable amount when the other measure is higher.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |