Words / R / Business

recoverable amount

noun

C2CEFR level
85/100Rarity: very rare
TechnicalRegister

The higher of an asset's fair value less costs to sell and its value in use, used as the benchmark in impairment testing.

We only impair the cash-generating unit once its carrying amount climbs above its recoverable amount.

Topic: Accounting in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Accounting