The realisation of the profit or loss on a depreciable asset transferred within the group:

Question

Quizplus · Accepted Answer

The realisation of profit or loss on a depreciable asset transferred within the group is assumed to occur when the future benefits embodied in the asset are consumed by the group. This is because the group will continue to use and benefit from the asset, and the transfer of ownership within the group does not change the fact that the asset will ultimately be used up or become obsolete. Therefore, the profit or loss on the transfer should be recognised at the time when the future benefits of the asset are fully consumed by the group.

The Realisation of the Profit or Loss on a Depreciable