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Depreciated asset – write off?

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Depreciated asset – write off?

  • This topic has 2 replies, 3 voices, and was last updated 8 years ago by alkemist.
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  • February 23, 2014 at 1:39 pm #159856
    Sangria9
    • Topics: 25
    • Replies: 285
    • ☆☆☆

    Hi all!

    I would like to find out, whether an entity should write-down from it’s SOFP a non-current asset, that was totally depreciated but is still in use?
    I think, that an entity shouldn’t do this and should leave in its SOFP cost of non-current asset and accumulated depreciation. It seems more like an error when estimating useful life of an asest.
    But I would like to hear your ideas..

    February 23, 2014 at 5:57 pm #159884
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22603
    • ☆☆☆☆☆

    A company should regularly review estimated useful lives and adjust depreciation over the revised estimated life. In theory at least, no asset should be written down to zero if that asset is still in use

    February 24, 2014 at 2:33 am #159911
    alkemist
    Moderator
    • Topics: 3
    • Replies: 493
    • ☆☆☆

    A fully depreciated item which has not been e valued but is still in use is generally carried at $1 (or whatever the smallest unit of presentation is). This is to show that the asset is still in use.

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