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
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Legend: Oh! So you are saying that he has Negative-Worth💰.
Legend: Oh! So you are saying that he has Negative-Worth💰.
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Johnson has a substantial downreaching capital asset which he intends to extend to emerging cock markets.
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by RichardPoenisWeiner September 22, 2022
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Donald Trumps defense in the New York fraud trial is that all valuations previously given are true, using the Variable Value Asset method of accounting.
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An assembly with which to celebrate students ‘achievements’ such as birthdays. –held every Friday afternoon- similar to Mass, but is hosted by a manwho regards himself on par with God like stature, along with a long-haired Science co-ordinator, who, funnily enough, is a bitch; an assembly in which a regimented clap is allowed for a controlled burst of time.
An assembly with which to celebrate students ‘achievements’ such as birthdays. –held every Friday afternoon- similar to Mass, but is hosted by a manwho regards himself on par with God like stature, along with a long-haired Science co-ordinator, who, funnily enough, is a bitch; an assembly in which a regimented clap is allowed for a controlled burst of time.
Example---
HT: So let’s have on e round of a happy birthday rendition.
{Terrible piano playing ensues, coupled with the vocals to ‘Happy Birthday’ from children… followed by clapping.}
HT: Right! Nathan! You can go sit outside my office, there was no need for that extra-clap of an outburst.
Teacher: Once again, an excellent and most celebratory, ‘Celebratory’ Assembly
HT: So let’s have on e round of a happy birthday rendition.
{Terrible piano playing ensues, coupled with the vocals to ‘Happy Birthday’ from children… followed by clapping.}
HT: Right! Nathan! You can go sit outside my office, there was no need for that extra-clap of an outburst.
Teacher: Once again, an excellent and most celebratory, ‘Celebratory’ Assembly
by Gwendolenalexia July 30, 2012
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