A measurement base and valuation measure that captures the selling price of an asset (or a broadly an item), calculated at fair value (FV), net of any costs of disposal. The selling price reflects the price obtained or obtainable under current market conditions in an orderly transaction between knowledgeable, willing parties (e.g., buyers and sellers), at the measurement date. It reflects the highest and best use of an asset or item upon revaluation.
The net selling price is given by the following formula:
Net selling price = fair value – costs of disposal
This measure is a key ingredient for determination of a recoverable amount (being, per se, the higher of an asset’s net selling price and its value in use (VIU).
