What's different among residual value and recoverable amount?

Residual value is the value remaining in the asset at the point in time when the asset has deteriorated to a point that it must either be closed or renewed, and is therefore not usually the same as recoverable value. The recoverable amount is the higher of either the asset's future value for the company or the amount it can be sold for, minus any transaction costs.

Hello Team,

When you purchase an asset for your small business, you may need to depreciate it over a period of years rather than deduct the entire amount as an expense in the year of purchase. To determine how much depreciation to claim each year, you need to estimate how much you will receive when you sell the asset once its useful life is over. This amount is the asset's residual value, also known as its salvage value. Accountants make no distinction between the two terms.

Regards,

Saiyid

i agree with you for residual value definition but

The recoverable amount for asset is the higher its fair value less cost to sell and its value in use we shall estimate it when occurs any indication may be the asset is impaired

thanks for your effort