fully depreciated asset — OpenTuition Forums

NDNoura Dahmash16y ago

hi my name is noura from syria and i've a question please
if the assets had been fully depreciated (historical cost-accumulated depreciation =0),should we remove it from the accounting records so the statement of financial position or we disclose it in the sofp with it just historical cost as their is no depreciation any more

SSalman16y ago#1

If it is fully depreciated then it is written of the statements as we would already have deducing the depreciation from the Cost of the asset and show it in the financial statements at NBV and making the depreciation our cost in the statement of comprehensive income so same this time we will deduct the depreciation leaving the Asset's value as Zero, Hence writting it off.

MikeLittleTutor16y ago#2

Hi Noura

has anyone ever told you you look just like Eva Longoria from Desperate Housewives?

You would keep the asset within the SoFP assets, but at zero value. Does that make sense? It's the equivalent of removing it from the assets! However, strictly speaking, it should never be written down to zero - if it's still in use and producing, then the directors should have regularly re-assessed the asset's estimated useful life and made the necessary adjustments