Selling/Disposing of Company Fixed Assets

Selling/Disposing of Company Fixed Assets

Fixed Asset:
Refers to assets used by a business for production of goods or provision of services, leased to others, or for administrative purposes, with a useful life exceeding one year.

Fixed Asset example:
Building, Motor Vehicle, Machinery       , Land       , Furniture       , Long-term Investment, etc
      
These fixed assets have only two disposal scenarios:
A. they are sold
B. they are abandoned.

Disposal refers to the sale, dismantling, gifting, or recycling of company assets, or declaring them as surplus assets meeting company requirements.

From an accounting perspective, the disposal of fixed assets requires comparison with the asset's Net Book Value (NBV).
*Net Book Value (NBV) = Original Cost of the Asset - Accumulated Depreciation*