Loss on Asset Disposal
Code: 5320
👁 Views: 98
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Losses incurred when fixed assets are sold below their book value
Sub-accounts
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 16
Property, Plant and Equipment
US GAAP
ASC 360
Property, Plant and Equipment
❓ Frequently Asked Questions
Q: How is a loss on sale of a fixed asset calculated?
A: Loss on sale = (Historical cost - Accumulated depreciation) - Sale price. If the result is positive (carrying amount > sale price), it is a loss.