What financial concept is most closely related to future cash generation from an asset?

The most closely related financial concept to future cash generation from an asset is value in use. This concept refers to the present value of the expected future cash flows generated by an asset, discounted back to their present value. It captures the economic benefits that an entity expects to derive from using the asset over its useful life.

Value in use is essential for impairment testing of assets under accounting standards, as it helps determine whether the carrying amount of the asset exceeds its recoverable amount. If an asset's value in use is higher than its book value, it is not impaired; if it is lower, the asset may need to be written down.

Fair value, while also related to an asset's value, focuses more on the price at which the asset could be bought or sold in a market transaction, rather than the cash flows it would generate for the entity using it. Book value represents the value of the asset according to the company's books, typically based on historical cost, which does not directly relate to future cash flows. Market value reflects what the market is willing to pay for the asset, which can be influenced by external factors and may not represent the future cash generation potential of the asset in question.