When the continuation of depreciating a long term tangible asset at a diminishing value becomes unprofitable or purposeless, so the company decides to dispose of the asset at a stipulated cost which is below book value resulting in a loss which is then offsetted against the companies profits. A transaction of this nature is usually made when the asset becomes dormant and ineffective, even though it may well still be in the beginning of its life expectancy. The disposing of as asset is also written off the Balance Sheet as a long term investment and making way for a more effective and valuable long term asset.
If there is capital to be made on disposing of an asset, then both parties agree to a value where under the table cash transactions are made (off the books) and a much lower value is agreed upon (on the books) which is then recorded as a loss and offsetted against the companies net profit.
If there is capital to be made on disposing of an asset, then both parties agree to a value where under the table cash transactions are made (off the books) and a much lower value is agreed upon (on the books) which is then recorded as a loss and offsetted against the companies net profit.
Rupert Murdoch: "I got rid of Alex!" James sighed, "I thought he was an asset, turns out he was nothing but a liability"
Alan Bond: "What do you mean you got rid of him, hope you didn't kill him"
Rupert Murdoch: "Nah, there's no gain from killing him, I sold him to the opposition and i made a profit"
Alan Bond: "Ahhhh, now I can see how Wendi Deng has asianized you"
Rupert Murdoch: "What do you mean by that?"
Alan Bond: "Nothing!, you know hoe Asians are carnivorous when it comes to money, it looks like it's rubbing off on you"
Rupert Murdoch: " Yep, learn Alan, disposing of an asset requires a lot of foot work if you know what I mean".
Alan Bond: "What do you mean you got rid of him, hope you didn't kill him"
Rupert Murdoch: "Nah, there's no gain from killing him, I sold him to the opposition and i made a profit"
Alan Bond: "Ahhhh, now I can see how Wendi Deng has asianized you"
Rupert Murdoch: "What do you mean by that?"
Alan Bond: "Nothing!, you know hoe Asians are carnivorous when it comes to money, it looks like it's rubbing off on you"
Rupert Murdoch: " Yep, learn Alan, disposing of an asset requires a lot of foot work if you know what I mean".
by A=L+P January 19, 2018
Get the Disposing of an assetmug. by Adrielle diap June 18, 2018
Get the Adrielle Disposalmug. (disposal crew) a Pyro maniac that burns people and buildings with a flamethrower for a price or because of mental sickness.
by Domdom72 September 15, 2016
Get the disposal crewmug. These bright orange highlighter of a pen will fuck you up. These things can have you hungry almost immediately after hitting it, and making your vision blurry, all while you're somehow functioning like a normal human being. You alien.
by novaranium August 13, 2023
Get the Dabwood Disposablesmug. Term in the vaping community used to refer to a disposable e-cigarette, one that is not rechargeable or modifiable (unless you really know your way around it).
by Already.InUseBySomeoneElse January 2, 2022
Get the Disposablemug. by mrpeas June 13, 2022
Get the disposablemug. when it's convenient for someone to completely disconnect from a person and be uncaring about the impact on that person
You are emotionally disposable to someome when they can cut you off from contact and conversation, and while you cry and grieve they could care less that you are crying and grieving.
by Lost in Louisiana October 5, 2018
Get the Emotionally disposablemug.