Quote:
Originally Posted by ammadbeaconite
Fine. My first query is that is there any exception to this rule?
What I would have done is as follows:
Depreciating the asset by 5312.5, and then selling for 10000 and reporting a gain of 4687.5. Please explain if the treatment applied by me is correct or not. Thanks
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Your treatment is absolutely incorrect treatment. The relevant standard IAS-16 or any book does not provide any such treatment.
You can not depreciate an asset more than depreciable amount e.g (Cost - Residual Value)
However, under both options Net impact on profit will remain same.