What is the difference between recoverable value and residual value?

Recoverable value refers to the higher of an asset's fair value less costs to sell or its value in use, representing the maximum amount that can be recovered from an asset. In contrast, residual value is the estimated amount that an entity expects to receive from an asset at the end of its useful life, after deducting any expected disposal costs. Essentially, recoverable value focuses on current potential recovery, while residual value is a long-term estimate related to the asset's end-of-life.