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why depreciation on disposal group should be ceased when held for sale ? waiting for ur quick reply sir 🙂
Because that’s the rule under IFRS 5. Upon the decision to sell /dispose of the asset, it shall be remeasured to fair value and from then depreciation ceases
and sir if that asset is held for sale and we have stopped depreciating !!
if that is not sold with in a year or two and we have now decided to again use that asset in our company !! how will the depreciation bhe chrged ? on old value or new value ?
and kindly telme what are disposal groups ?I don’t believe that that’s acceptable. In order for an asset to be classified as AHFS, it shall be actively marketed at a price the company is willing to accept, it shall be available for immediate sale and sale should be highly probable within twelve months.
The concept of changing this course off action is not acceptable!
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