USA Fixed Asset disposal

[hitman444]

I had a quick question on FA disposals. I know how to dispose of them, and what the entry is/should be. However, I just started working for a company that doesn't use a conventional means of disposals - for example, if a old asset is no longer in use but is still depreciating, a new/replacement asset is added, but for the DIFFERENCE between the new asset and NBV of the one they are replacing.

I don't agree with this, but what they are effectively doing is deferring their loss vs immediate recognition. I've tried searching for the GAAP literature on this. Really I'm just looking for any literature in regard to the immediate recognition of a loss on disposal of a fixed asset. Any help would be appreciated. Thanks.

 

[SBS Boise]

Look at SFAC 5

they have lost the economical value of the disposed asset and must claim the loss now.

 

[DTA93433]

Below is a link to U.S. GAAP (and IFRS) codification of accounting standards for property, plant & equipment:

http://accountinginfo.com/financial-accounting-standards/asc-300/360-property-plant-equipment.htm

Hope this answers your question.