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Accounting entries for derecognition of an asset

How to you pass journal entries for a derecognition of a part of an asset as per IAS 16?

asked Dec 23, 2013 in IAS 16 - Property, Plant and Equipment by anonymous

2 Answers

0 votes
Dr Net disposal proceeds (Bank) (SFP)
Dr/Cr Gain /Loss (P/L)
Cr Asset derecognised/disposed (SFP)

Disposal proceeds are measured at fair value of the consideration receivable.

I hope it is clear.
answered Mar 20, 2015 by Fusion01 Level 3 Member (5,690 points)
0 votes
If you were sepretaly depreciating part of asset then it is better to make following entries

Acc. Depreciation (dr)
Loss (dr) (if dr side is less than credit side)
Part of asset (cr)
Profit (cr) if cr side is less than dr side.

Amount of loss or profit is difference of both side.
answered May 6, 2017 by Honey92 Level 1 Member (2,000 points)