{"id":4837,"date":"2014-04-02T08:48:39","date_gmt":"2014-04-02T06:48:39","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=4837"},"modified":"2014-03-30T16:49:22","modified_gmt":"2014-03-30T14:49:22","slug":"disposing-assets-in-the-annual-report","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/disposing-assets-in-the-annual-report\/","title":{"rendered":"Disposing assets in the annual report"},"content":{"rendered":"<p>Something I have come across too often now is the inability to show movements in property, plant and equipment (PPE) correctly.<\/p>\n<p>Situation of what\u2019s done in everyday accounting with PPE items is as follows:<\/p>\n<ol>\n<li>Assets are disposed in accounting on a regular basis in their cost and accumulated depreciation;<\/li>\n<li>The carrying value of disposed assets may or may not be zero, doesn\u2019t matter;<\/li>\n<li>Assets are also acquired and existing assets are depreciated.\u00a0<!--more--><\/li>\n<\/ol>\n<p>Now it comes the time to prepare the annual report and what\u2019s usually done is that the acquisitions are shown alongside with the depreciation as movement and they\u2019re both added to brought forward cost and accumulated depreciation balances. What\u2019s not done is the deduction of disposed balances. Why, I don\u2019t know.<\/p>\n<p>Matter of fact is that you ought to deduct those disposed balances from the carried forward balances or else you\u2019re showing your PPE in a bigger cost and accumulated depreciation than there really is existing.<\/p>\n<p>I guess the reason why it\u2019s not done often enough is because the assets disposed were in fact with zero carrying value and as such there\u2019s no movement in carrying value.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Something I have come across too often now is the inability to show movements in property, plant and equipment (PPE) correctly. Situation of what\u2019s done in everyday accounting with PPE items is as follows: Assets are disposed in accounting on a regular basis in their cost and accumulated depreciation; The carrying value of disposed assets [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56],"tags":[],"class_list":["post-4837","post","type-post","status-publish","format-standard","hentry","category-1-5-4-utilizing--selling-and-disposing-of-assets"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4837"}],"version-history":[{"count":1,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4837\/revisions"}],"predecessor-version":[{"id":4838,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4837\/revisions\/4838"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4837"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}