When to 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.
Accounting for an Asset Derecognition
A gain or loss can be recognized 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 .
