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+--- 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 didnât 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.