Accountancy Forum
idle assets - Printable Version

+- Accountancy Forum (
+-- Forum: The Profession (
+--- Forum: Accounting and Audit (
+--- Thread: idle assets (/showthread.php?tid=6449)

idle assets - patson - 08-26-2009

When an asset is idle,do you need to impair it or derecognise it

- umairahmed-1 - 09-09-2009

Dear patson

You didn’t elaborate "idle".
1. If asset is idle with the intention to use it in future, then it shall be depreciated and reviewed for impairment (if indications of impairment exist).
2. If it is discontinued then it shall be derecognized from books and any gain or loss shall be recognized accordingly.
3. If it is discontinued and held for sale, then it shall be reviewed for impairment (if indications of impairment exist) but no depreciation shall be charged under this condition.

Hope this serves the purpose.