A proper fixed asset disposal is of some importance from the perspective of maintaining a clean ba...
In this article, we will deal with deemed disposals of an associate, but the rules and accounting methods apply with any other deemed disposal, too. What is deemed disposal? Deemed disposal of an associate or a joint venture is simply reduction in interest or share in an associate or a jo...
In this article, we will deal with deemed disposals of an associate, but the rules and accounting methods apply with any other deemed disposal, too. What is deemed disposal? Deemed disposal of an associate or a joint venture is simply reduction in interest or share in an associate or a jo...
Asset Impairment and Disposal
Entry 4 If the asset is sold for cash, the cash or bank account is debited and the disposal of fixed assets account is credited with the amount actually received on the sale of the asset. Entry 5 If the asset is traded in, sold on credit, or destroyed (and an insurance claim is mad...
The journal entry is (“-“ is credit, “+” is debit): After we transfer these entries to Mommy’s individual statement of financial position, here we go: we have a consolidated statement of financial position of Mommy group at 31 December 20X6: ...
The journal entry is (“-“ is credit, “+” is debit): After we transfer these entries to Mommy’s individual statement of financial position, here we go: we have a consolidated statement of financial position of Mommy group at 31 December 20X6: ...
A company may sell another business it owns to raise funds for an acquisition or to dispose of an asset that no longer strategically fits with its business. When a company sells a business line or component, it books a gain or loss on the disposition. The company records the g...
Sometimes, you might need to record a positive depreciation for governmental funds that record the fund as an asset with a negative value. Then, you can depreciate the asset with positive depreciation. When the system calculates positive depreciation, it considers the negative book value of the as...
Create a new journal. Enter the asset in the journal line. Post the acquisition entry. In order to check the status of the fixed asset, Go to Fixed assets| Common| Fixed asset| All fixed assets. Filter on the asset number. Go to Value model in the ribbon. As shown in the belo...