Smalltalk
Blogger
Share this content
0
354

Dispoal of fixed assets on purchases of new property

Dispoal of fixed assets on purchases of new...


Hi

Our company is going to sell current business property and purchase new one and will have dispose some of the fixed assets in the old property,how shall we treat the loss on disposl, would it accounted as costs to the purchses of the new property and catipalised ? 

Thank you for your advice

Replies

Please login or register to join the discussion.

avatar
By Kevkava
23rd Feb 2016 10:54

Why would a loss on disposal be 'capitalized'?

Why would a loss on disposal be capitalized? It's a P&L item. Your accountant will be able to complete the double entry for you (and make the relevant entries in the CT comp).

Thanks (1)
avatar
28th Feb 2016 20:14

I thought it could be justified as costs of purchasing new premises as if we didn't move to new one and then  disposal would not be necessary , and costs on buying new property could be capitalised

Thanks (0)
By Ruddles
28th Feb 2016 20:20

You thought wrong

And were you also going to capitalise the gain or loss on disposal of the property? After all, if you weren't going to move, the gain or loss would not arise.

Thanks (0)
Share this content