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SBRImpairment

Former userFormer user15y ago
I have a question regarding fair value and recoverable value.

Do fair value of asset equal to its recoverable value. In the case when recoverable value is NRV and in the case of VIU.
Vvalentinat17115y ago#1
Hello,

Sometimes the FV is the same as the recoverable value, but not always. For example, you have a car and its FV is 100.

Recoverable value is the highest of
NRV
and
VIU
So, if your car's FV is 100, and the costs to sell this car is 3, then your NRV=100-3=97, you see the difference now?

VIU is the future value discounted to the present.

I hope this helps.
Valentina
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