IAS 40Chapter 10Lesson 1
Disposals: derecognising and recognising the gain or loss
Step 1 of 7Learning objectives
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A property is derecognised on disposal or permanent withdrawal; the gain or loss is net proceeds less carrying amount, in profit or loss; consideration, replaced parts, retained liabilities and third-party compensation have their own rules.
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Learning objectives
- Identify the derecognition cases and the date of disposal.
- Calculate and account for the gain or loss on disposal under each model.
- Deal with variable consideration and replaced parts.
- Separate retained liabilities, third-party compensation and the replacement property.