Every now and then it happens that you’re going to get rid off one or some of your equipment or machinery. It could be even buildings or rooms that you own which are part of your property. Regardless of what it is exactly, matter of fact is that there comes a time you’re going to sell some of those items. 

As a normal course of every selling process, you get the idea first. You’re thinking of selling the item and as a part of the thought you’re also calculating a price you’d ask for it most probably. There could be a price you’d wish to get, but there’s most probably a reasonable price you guess you’d get. It goes without saying that the reasonable price you’d probably get is the price to be recognized as the value of the asset on the balance sheet. This price is to be used when you’ve made up your mind to sell the asset, you’re already looking for buyers and you’ve as a result of it, recognized the asset as an asset held for sale under current assets. The condition here is that it’s probable you’ll sell the asset within the next 12 months. If neither of the above has happened yet and you’re at best just in the first base of thinking about selling it, it’s still part of your property, plant and equipment and is recognized in its carrying value.