recoverability

(noun)

The property of being able to recover.

Related Terms

Examples of recoverability in the following topics:

  • Recoverable Reserves

    • Recoverable reserves are the amount of a natural resource present and their value is used to compute the resource's depletion expense.
    • The cost of the recoverable oil reserves are USD 780,000 (500,000 - 20,000 value of land +100,000 + 200,000).
    • The recoverable oil reserves account is valued at 741,000 (780,000 - 39,000) after one year of extraction activity.
    • Recoverable copper reserves include the amount of the current copper deposits present.
    • The amount of recoverable reserves are used to compute an asset's depletion.

  • Goodwill Impairment

    • If there is an indication that the book value of goodwill is greater than the recoverable value of net assets, an assessment of the recoverable value is made, and if the suspicion is correct, then an impairment expense is recorded.
    • An impairment cost must be included under expenses when the carrying value of a non-current asset on the balance sheet exceeds the asset's market value subtracted by any transaction costs (recoverable amount).
    • The impairment cost is calculated as follows: carrying value - recoverable amount.
    • 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 cost.

  • Indefinite-Life Impairment

    • An Impairment cost must be included under expenses when the carrying value of a non-current asset exceeds the recoverable amount.
    • 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 cost.

  • Impairment Measurement

    • Perform a recoverability test is to determine if an impairment loss has occurred by evaluating whether the future value of the asset's undiscounted cash flows is less than the book value of the asset.

  • Events Triggering Disclosure

    • It is not presently possible to determine with certainty what corrective action, if any, will be required, what portion of any costs thereof will be attributable to the Company, or whether all or any portion of such costs will be covered by insurance or will be recoverable from others.

  • Preparation of the Income Statement

    • Write-downs of inventories to net realizable value or of property, plant and equipment to recoverable amount, as well as reversals of such write-downs