Date of disposal

Learning objectives

• Determine the date of disposal of an asset by reference to the transfer of control.L2, L3

Normative references

• IAS 16 §69Forms of disposal (e.g. sale, entering into a finance lease, donation); date of disposal = the date the recipient obtains control in accordance with the requirements of IFRS 15 for determining when a performance obligation is satisfied.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• An entity signs a contract to sell a machine on 15 November. The buyer pays a deposit on 30 November, takes possession of the machine, assumes its risks and starts using it on 10 January, the date on which it obtains control. What is the date of disposal of the machine?L2