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We had purchased some machinery 02 years ago for $75,000 to manufacture a particular product. The useful life time of the machinery is 05 years and it has now been depreciated for 02 years at 20% a year. However, the product manufactured by this machinery appears to be unprofitable and the management has decided to stop producing this product. Therefore we are planning to sell this machinery. My question is can we avoid depreciating the machine until it is sold? can we categorize it as investment property?
in IAS 16 - Property, Plant and Equipment by Level 1 Member (1.1k points)

1 Answer

0 votes
You cannot designate motor vehicles as investment properties. you need to depreciate until you sell it off.
by Level 2 Member (3.4k points)
Can't categorized as a non current asset held for sale if conditions met.