An entity is preparing its financial statements for the year ending November 30, 20X8. Certain items of plant and equipment were scrapped on January 1, 20X9. At November 30, 20X8, these assets were being used in production by the entity and had a carrying value of $5 million. The value-in-use of the asset at November 30, 20X8, was deemed to be $6 million, and its fair value less costs to sell was thought to be $50,000 (the scrap value). -->What is the recoverable amount of the plant and equipment at November 30, 20X8?

The answer is $6,000,000

The question I need answered is what bolded paragraph is the IAS 36 covers the question above and why I put a link below to IAS 36

http://www.frascanada.ca/international-financial-reporting-standards/resources/unaccompanied-ifrss/item45641.pdf