Page 33 - FINAL CFA I SLIDES JUNE 2019 DAY 8
P. 33
Session Unit 8:
29. Long-lived Assets
LOS 29.j: Explain the de-recognition of property, plant, and equipment and intangible assets.. p225
De-recognition = when an asset is sold, exchanged or abandoned!
Sold Exchanged Abandoned
• Asset removed from • Old asset removed from • Treated as sale except
balance sheet and balance sheet and new that there are no cash
difference between tanties flows as carrying value
brought in at fair value!
proceeds and CV (carrying is removed from
cost less original cost less • Gain or loss recognised in balance sheet;
acc’t. depreciation less any the income statement by
impairments); comparing the carrying • Loss of the same
value of the old asset with amount recognised in
• Gain or Loss taken into fair value of the new asset! the income statement.
income statement as part
of other gains and losses
or separately, if material.
