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When fixed asset value drops to very low amount ?

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  • When fixed asset value drops to very low amount ?

    Hi
    I have a few fixed assets in my list that have their current valve at or below $10,after years of depreciation.
    How do I get them "off the book"
    Do I just stop claiming on them?
    It is not like I have actually disposed of them ,they are just not worth anything.
    Thanks
    Richard

  • #2
    Ordinarily, your accountant would write them off the books at some point. That point is when the applicable depreciation allowance amount results in the fixed asset arriving at a value of zero. (Presuming you use an accountant)
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    • #3
      Originally posted by richard56 View Post
      Hi
      I have a few fixed assets in my list that have their current valve at or below $10,after years of depreciation.
      How do I get them "off the book"
      Do I just stop claiming on them?
      It is not like I have actually disposed of them ,they are just not worth anything.
      Thanks
      Richard
      You get them off your books when the asset is gone ie left your possession.
      You stop claiming when the depreciation is nothing Assets stay on the books until they leave your possession eg sold otherwise they stay on your books forever
      a asset register is a list of the assets regardless of what the asset is worth or what the book value is
      When you current value or not worth much are you referring to
      Accounting book value
      Tax book value
      Registered valuers valuation
      Value to replace
      Eg
      If say you own a building that has now has a tax book value of $10 you want to remove it from the asset register when you still use it ?
      So how do you do your asset audit when you have removed the asset ?

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      • #4
        Hi
        Thanks Beano.
        This is the info I needed.
        "You get them off your books when the asset is gone ie left your possession.
        You stop claiming when the depreciation is nothing Assets stay on the books until they leave your possession"

        Thanks
        Richard

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        • #5
          I disagree. Unless things have changed a lot, removing the asset from your asset / depreciation register is not dependent on whether (or not) you still retain possession. It is / can be removed when it's 'book value' reaches zero. In most cases, having an item (not being land or buildings) in an asset register is for depreciation allowance calculations for tax purposes. Even 100% depreciation on an item worth zero is still zero, so ask yourself the question: why is that item still listed in your books?

          Caveat: you should speak with your accountant as NZ tax law changes happen quickly and sometimes quietly.
          Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

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          • #6
            You could always sell it for one cent.

            Brings up some interesting possibilities.

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            • #7
              In most cases there are two asset registers
              one for IRD and one for accounting.
              periodically you should check to see if all the items you own are still in your possession

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