Disposals and value changes

A disposal preserves its date, method, proceeds and carrying value basis. Retirement and impairment records retain the proposed change, valuation evidence and related accounting reference. An impairment identifies the exact asset book and schedule it was assessed against; a tax book cannot silently inherit a financial-book adjustment. The calculation provides material for a decision; the controller still needs the relevant policy, source amounts and business reason.

The controller reviews the exact proposed transaction independently of its preparer. Changes to proceeds, date or book basis invalidate the old decision. This prevents a legitimate approval of one amount from being reused for a different transaction and preserves an explanation of the final gain, loss or write-off treatment.

Fixed Asset Accountant prepares the transaction. Controller / CFO independently approves the applicable revision. A connected accounting journal must be validated and posted before the asset subledger records the financial completion. Revaluation is permitted only where the selected accounting framework allows that treatment.

A period depreciation run and a disposal can compete for the same asset. Coordinate them so the final charge and carrying amount are applied in the correct order once. A duplicate callback or repeated posting request must not create another disposal journal or reduce the remaining asset basis a second time.

Do not dispose of an asset when a conflicting transfer or period run is unresolved. Correct a posted disposal with a linked reversal and reviewed replacement. Impairment and lease calculations depend on classification-specific rules; a generic fair-value difference cannot stand in for the required accounting assessment.

Impairment requires the evidence and model appropriate to the selected accounting framework. A change in quoted market value alone cannot establish the accounting result for every asset. After confirmed posting, the reviewed basis and remaining life apply to future depreciation. Earlier periods retain their original basis, charge and carrying value, so the roll-forward can explain when the loss occurred. Revaluation likewise follows only a permitted reviewed policy; it is not a universal button that resets all assets to a supplied fair value.

Financial completion depends on the connected general ledger confirming the exact posted journal. Preserve its reference with the disposal or value-change record. If a correction is needed after posting, use a linked reversal and reviewed replacement so the asset roll-forward and ledger can explain both the original event and its correction.

Configure disposal methods, valuation review, book mappings and required evidence with the controller. Review a sale, a retirement without proceeds and a disposal that overlaps a depreciation period. The completed history should show the asset’s exit and financial effect without deleting its acquisition, movements, maintenance or prior posted depreciation.

Keep the asset tag with disposal evidence so the item leaving the register is unambiguous.

• Pending Disposal Approvals — Review the work and supporting records for this module.