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

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.
Similar Threads
  1. Patrick Teffenretter
    Replies:
    1
    Views:
    2,105
  2. scott s.

    Disposal of ex-rental asset

    scott s., Feb 12, 2011, in forum: Tax
    Replies:
    5
    Views:
    1,319
    scott s.
    Feb 14, 2011
  3. VOXYUL

    South Africa acounting assignment:asset disposal

    VOXYUL, Feb 12, 2012, in forum: Exams and Studying
    Replies:
    0
    Views:
    857
    VOXYUL
    Feb 12, 2012
  4. VOXYUL

    asset disposal??

    VOXYUL, Feb 12, 2012, in forum: Exams and Studying
    Replies:
    1
    Views:
    839
    bklynboy
    Feb 21, 2012
  5. VOXYUL

    asset disposal??

    VOXYUL, Feb 14, 2012, in forum: Exams and Studying
    Replies:
    0
    Views:
    1,420
    VOXYUL
    Feb 14, 2012
  6. CA2012

    USA Fixed asset disposal

    CA2012, Oct 30, 2013, in forum: Technical Queries
    Replies:
    2
    Views:
    1,397
    The Finance Writer
    Oct 30, 2013
  7. Goldie

    USA disposal of asset

    Goldie, Feb 15, 2016, in forum: General Tax Discussion
    Replies:
    3
    Views:
    541
    kirby
    Feb 16, 2016
  8. hitman444

    USA Fixed Asset disposal

    hitman444, Sep 26, 2016, in forum: Technical Queries
    Replies:
    2
    Views:
    304
    Stephen Gsell
    Oct 2, 2016
Loading...