When do I derecognize an asset?

An asset is derecognized upon its disposal, or when no future economic benefits can be expected from its use or disposal.

Derecognition can arise from a variety of events, such as an asset’s sale, scrapping, or donation.

You can recognize a gain or loss from an asset’s derecognition, though a gain on derecognition cannot be recorded as revenue.  The gain or loss on derecognition is calculated as the net disposal proceeds, minus the asset’s carrying value.

Related Topics

Fixed asset disposal accounting
How do I write off a fixed asset?
When do I eliminate accumulated depreciation?