I disposed of assets last year but the assets are showing current YTD depreciation, why ?
Shouldn't the full value of the asset be written off at the time of the disposal ?
I disposed of assets last year but the assets are showing current YTD depreciation, why ?
Shouldn't the full value of the asset be written off at the time of the disposal ?
A disposal is a calculation of depreciation. In other words, the disposal itself is the calculation, if the NBV on the asset after the disposal is greater than zero, that’s the calculation you get. It does not just zero an asset out.
As for the YTD, unless the asset has already been fully depreciated in a year prior to the year of disposal, there will still be a YTD amount that needs to be accounted for in the year of disposal.
Since the disposal will never again advance the through date, or accumulate depreciation, those values will always be on the disposed asset, but those disposed asset do drop off the Depreciation Expense report, so they will not be a part of any current calculation.
See also How to dispose an asset for more information.
A disposal is a calculation of depreciation. In other words, the disposal itself is the calculation, if the NBV on the asset after the disposal is greater than zero, that’s the calculation you get. It does not just zero an asset out.
As for the YTD, unless the asset has already been fully depreciated in a year prior to the year of disposal, there will still be a YTD amount that needs to be accounted for in the year of disposal.
Since the disposal will never again advance the through date, or accumulate depreciation, those values will always be on the disposed asset, but those disposed asset do drop off the Depreciation Expense report, so they will not be a part of any current calculation.
See also How to dispose an asset for more information.
*Community Hub is the new name for Sage City