Replies (22)
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Tim’s answer is a perfectly reasonable one for the question you ask. But I guess, and I suspect that Tim does too, that you meant to ask how to account for the disposal when it has taken place.
If you would like to explain why the matter is causing you difficulty, and why the answer is not obvious, you will increase your chances of getting a helpful answer.
Suspect the difficulty the OP is having is that there is no ‘profit on disposal’ figure.
OP - the answer is ... there is no ‘profit on disposal’ figure. Dr Acc depn, Cr cost. If it’s fully deprecated, that journal will balance, job done.
Ooh, are you suggesting that all fully depreciated vehicles are always disposed of 'free' to the collector?
To be fair, the OP said ‘disposed’ not ‘sold’. As thomas34 said “ ... scrapped ...”etc.
I wouldn’t want to assume anything not in the OP ... ;)
'Assume' is actually what you did.
"Disposal may be accomplished by abandonment, destruction, internment, incineration, donation, sale, etc."
Read more: http://www.businessdictionary.com/definition/disposal.html
Who is it being disposed to? Any related party/market value issues?
Are there any disposal proceeds? Or is it being scrapped?
The OP hasn't covered him/herself in any glory in setting out the enquiry and, as so often happens these days, within the Aweb forum, one tends to have to decipher what the intention was.
From my understanding, the question is, how to remove a fully depreciated motor vehicle, from the balance sheet. As I understand the question, there is no physical disposal of the said vehicle.
I could be wrong. I have been, on many occasions, before!
Side question - if all fixed assets are fully deprecated, do you need a FA note under FRS102s1A? £nil NBV in PY and CY?
Yes.
You have Fixed Assets. You need a note.
Just because you value them at nil doesn't change this, imho.
"Fully depreciated" means it's got **** all value in the balance sheet. "Disposed of" means sold, scrapped, thrown away. Ergo the sale proceeds are a profit on sale. I'm amazed that such simple concepts have kept me in a job for so long.
Aye, well, I suppose we'll have to wait until the OP can explain what his question actually is.
Could be a long wait as that cloak of anonymity will have to be removed. I suppose they could try to pretend that they are a good friend of the OP but that old trick has been tried before.