A fixed asset should be removed from the accounts only if it is no longer being used in the business. If you have an old computer which has been sitting around for a long time, then it should be removed. But if that same computer is still being used to complete tasks, then it shouldn’t be removed.
It’s not enough to just think about what will happen with your assets when they are sold or disposed of; instead, always keep in mind how these assets are currently impacting your company’s profitability.
In the case of an old computer, if it is still being used in your company and has not been sold or disposed of, then you should leave that asset on your balance sheet. But if it’s just sitting around taking up space with nothing to do but gather dust, then you need to remove it from the books so that you can track its worth accurately over time rather than overlooking its usefulness.
Article Link: Learn more about Assets in Accountancy – find out when they are removed by clicking here! Possible Content for a Fixed Asset That Is No Longer Being Used In Company: A fixed asset should be removed from the accounts only if there is no longer any use for this asset within the business; otherwise.
