Other Fixed Assets

PhilippaG
PhilippaG Registered Posts: 4 New contributor 🐸
in General accounting discussion
We have a system for recording our Other Fixed Assets such as furniture and fittings for our office and schemes. We depreciate depending on the life of the item.
Once the item is fully depreciated we leave it in the asset register even though it has a 0 Net Book Value. We only remove it from the register if it has been disposed of, could anyone tell me whether this way of accounting is correct or should it be removed from the register once it is fully depreciated.

Thanks
Philippa

Comments

  • anwarbiggy
    anwarbiggy Registered Posts: 14 New contributor 🐸
    best bet is to depreciate it over a longer period, as you may still be using it. If no longer used, then write it off on the disposal account, job done.
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    In answer to your question Philippa, your treatment is fine. The depreciation term is only an estimate so if you still use the asset after that and retain it on the register at zero NBV then that is fine.
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    deanshepherd wrote: »
    In answer to your question Philippa, your treatment is fine. The depreciation term is only an estimate so if you still use the asset after that and retain it on the register at zero NBV then that is fine.

    Agreed. Its common to have things still on the register with zero NBV. The tricky bit is remembering to remove them and net off the asset & accum depn on the nominal.

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