Value-in-use is the net present value of the cash flows generated by an asset as it is currently being used by the owner. This amount may be less than the net present value of cash flows from the highest and best use to which an asset can be put. For example, the value-in-use of farmland in an urban area could be much lower than its highest and best use, since the farmer could earn more by constructing commercial or residential buildings on the property.

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Fair Value Accounting