What You Should Know About Asset Disposal & Asset Life Cycle?


Assets are considered as the backbone of an organization! But we have to remember that assets have a specific life after that period assets disposal is required. In this blog, we have collated a few questions related to assets. So, let us begin!

What is Asset Disposal?

When assets are in a nonproductive stage and no longer able to fulfill its primary objective then it needs to be disposed of. It is the last stage of the asset life cycle. Asset disposal is the process in which long term assets are eliminated from the account records and sold at disposal value.

What is the Disposal Value?

In accounting terms, the asset disposal value is the value at which the asset is sold when an asset is no longer useful. For example, a piece of equipment is installed in a factory and its productive life is over, it is replaced by another updated version of the equipment. The minimum value at which the equipment is sold that is known as disposal value.

Also Read: Asset Management Software: Manage Acquisition & Disposal

When Does an Asset Need to Be Disposed Of?

There are many factors need to be concerned before asset disposal:...........

This article was originally published at Asset Infinity. You Can see the original post here at https://www.assetinfinity.com/blog/everything-about-asset-disposal

Comments

Post a Comment

Popular posts from this blog

What Do We Need to Know About the Asset Reservation System?

Image
  Lots of scenarios occur where employees do not have the required asset on the location and as a result business operation suffers and work is delayed. Does this type of scenario occur in your organization? If yes, then your problem will be solved after reading this blog. The solution is a simple asset reservation system! An asset reservation system provides several benefits to you and your organization. From extra power over your resources for greater perceivability over which of your partners are utilizing what, a resource booking framework can help. Thus, on the off chance that you frequently wind up searching for resources that are now being used, or on the other hand on the off chance that you need to know when resources are going through upkeep, utilizing a booking framework can assist you with controlling your resources. What Is an Asset Reservation System? Asset reservation system by the employees to know the required asset is scheduled for utilization on a specific date. More
Read more

What Is the Difference Between Unplanned and Unscheduled Maintenance?

Image
Unplanned maintenance and unscheduled maintenance are two remarkably similar types of words & that is why they are used interchangeably. In this blog, we will know what exactly unplanned maintenance and unscheduled maintenance are! Despite their names sounding so similar, there are some major differences so what are the major differences between them so Let us begin! What Is Unplanned Maintenance? Unplanned maintenance is that maintenance that is unplanned, unexpected. This maintenance is used when asset breakdown occurs & it is unexpected. Unplanned maintenance is often known as  reactive maintenance  or emergency maintenance. It can also be time-consuming as there is no proper strategy and the maintenance team will have to figure out what is the issue! Unplanned maintenance is expensive due to overtime, call-outs & spare parts required which might be needed to purchase. Also Read:  Detailed Overview and Importance of Planned Maintenance What Is Unscheduled Maintenance? Un
Read more

How to Avoid Redundant Capital Purchases with Asset Register Management Software

Image
Business in your company uses fixed assets to generate revenue. A fixed asset is an item possessed by the company for long-term use, and not to be sold within a year. Examples of fixed assets are equipment, vehicle, estate, computer, and other machinery. These assets are purchased and frequently used in the line of work. But when an organization does not keep all information sorted then it can lead to theft, asset misplacement, and chaos in daily operations! This is where asset register software can be helpful to your organization! How Does Asset Register Software Help? Asset register software has all the information of all the assets belonging to the organization. Therefore, it can be very beneficial for organizations in terms of asset optimization, asset utilization, boosting  asset performance . In all aspects, asset register software can be very useful as it can make assets more productive and increase the efficiency of each asset individually. Whenever any asset leaves the organiz
Read more