An value/ amount that is equal to the higher of an asset‘s fair value less costs to sell and its value in use (VIU). Recoverable value may also reflect the higher of a cash generating unit‘s (CGU‘s) fair value less costs to sell and its value in use. The recoverable value is usually set against an asset’s carrying amount: if the carrying amount is higher than the recoverable value, the asset is impaired, that is, an entity holding the asset would have to reduce the value of the asset by an amount known as impairment loss (which will be recognized in its accounting books as a result of that reduction). In other words, an asset would be carried at more than its recoverable value if its carrying amount is greater than the amount that can be recovered through use or disposal of the asset.