3
Fixed Asset gain/(loss) is still calculated upon disposal even the FA is fully depreciated with NBV = 0 , if it in same date.
The same is working fine, if you change the date.
However in real world accounting practice inevitably the business will be having depreciation adjustments and scrap on the same day, especially performing month end adjustments
As mentioned in International Accounting Standard (https://www.accaglobal.com/an/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/technical-articles/ppe.html) if an asset is to be derecognized when it is no longer expected to generate future economic benefits, a gain or loss is to be calculated hence we proposed to business to scrap the FA even the NBV is zero (after posting the depreciation adjustments).
The same is working fine, if you change the date.
However in real world accounting practice inevitably the business will be having depreciation adjustments and scrap on the same day, especially performing month end adjustments
As mentioned in International Accounting Standard (https://www.accaglobal.com/an/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/technical-articles/ppe.html) if an asset is to be derecognized when it is no longer expected to generate future economic benefits, a gain or loss is to be calculated hence we proposed to business to scrap the FA even the NBV is zero (after posting the depreciation adjustments).
STATUS DETAILS
Inactive