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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › PPE derecognise
Hi sir,
I am wondering why the carrying amount of PPE includes the cost of replacing part since the PPE is derecognised.
An asset should be removed from the statement of financial position on disposal or when it is withdrawn from use and no future economic benefits are expected from its disposal. The gain or loss on disposal is the difference between the proceeds and the carrying amount and should be recognised in profit and loss.
Hi,
Sorry Miley, I’m not too sure what you mean by the first sentence. If you can explain further then I’ll be able to help.
Thanks
