Residual value of properties

Residual value of properties

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We have a new property.

I am adding this to our FAR and need to set the residual value which generated 2 questions in my head:

1. The residual value on disposal is going to be more than we paid for it – so do we therefore not depreciate?
2. The residual values attached to all our properties are significantly low and if these were to be revised (as they should be each year) then the residual value will be in excess of the historic cost and therefore we will have nil depreciation – do I stop the depreciation on these?
Lucy Heywood

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