Fixed Asset Disposal - On Consignment for Potential Sale

USA Discussion in 'Technical Queries' started by Jeffrey Herbert, Nov 29, 2016.

  1. Jeffrey Herbert

    Jeffrey Herbert

    Joined:
    Nov 29, 2016
    Messages:
    2
    Likes Received:
    0
    My Company has ceased using an asset that there is apparently very little market for in this country. There is significant NBV remaining, and the initial vendor is currently holding the asset for us as part of a consignment deal. Meaning they may ultimately find a buyer for the item. We don't anticipate ever receiving any cash for the asset, but it's possible it may reach as much as 10-15% of the asset's remaining value. No idea when such a sale might occur, if ever.

    How should we dispose of this asset? Should the asset be scrapped, and fully impaired? If we do ultimately receive some remuneration from sale of this asset, how should it be recorded if we've already fully impaired the asset? The amount is sure to be far below materiality thresholds.

    Thanks!
     
    Jeffrey Herbert, Nov 29, 2016
    #1
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.