what happens after full depreciation is charged and the asset still in use?

If an assset is fully depreciated & if it is still in use - it is shown at a value of 1 so that asset is tracked. If it is not in use, sold off as scrap

Sriram Somayajula

Admin

11-Nov-21 14:24

Generally a business entity will take revaluation on the values of assets and liabilities for thier safety purpose whether they have valuated correctly or not . So in the situation like this, revaluation be made by the entity.

Vijay K

CA Inter

★ 9K+

11-Nov-21 12:27

AS 10 says that " assets should be reviewed at the end of each financial year and check whether there is any change in estimate of useful life or change in value" And such change will be adjusted as per AS 5 SO practically such a situation won't arise

Christeena Ambel

CA Inter

★ 5K+

12-Nov-21 23:34

If an asset is fully depreciated, review of useful life would have an impact if the entity adopts a revaluation approach. Both AS-10 and IndAS 16 require review of useful life at the end of each period.

CA Suraj Lakhotia

Admin

13-Nov-21 08:47