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Fixed Assets, when is a nil NBV a disposal?

I wonder can anyone give me some advice. I have started working for a new company that have recently transferred their accounts from one system (Sage) to another (Xero).
I asked the auditors for a copy of the FA schedule and they supplied this. I have set up this schedule on the new software with a few additions that have recently occurred. I have listed all the assets including the ones that have a zero NBV, as they are still being used. I thought I was brilliant because I have reconciled the FA register the auditors gave me to the balance sheet accounts and the Xero FA Register.
I have looked at the published accounts and they differ to the FA register the auditors gave me. They are showing the zero NBV assets as disposals. Is this correct? I know we still possess the items, I can see them! Should they be shown as "disposed"?


  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,042
    No they should not be shown as disposals.

    Accounts versus actual reality are two different things

    The NBV is not there to 'value' the actual assets that you can see

    The NBV is just there to spread the cost of the assets over there useful economic life

    Your business has paid for the assets and the money has left your bank account. NBV is just a way of spreading this bank payment so that it is not all shown as an expense in 1 particular year and therefore distort/lower the profit/results of one particular year.

    Don't bother including the assets that you can see as 0 NBV.
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
    Like the OP I would want to have a record on the software of these assets though. If you don't bother including them you would have to keep a separate FA register as the one in Xero would be wrong.

    I wonder if putting a NBV of £0.01 for these assets would be a work around?
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