When to derecognize an asset

An asset is derecognized upon its disposal, or when no future economic benefits can be expected from its use or disposal.

Derecognition can arise from a variety of events, such as an asset’s sale, scrapping, or donation.

You can recognize a gain or loss from an asset’s derecognition, though a gain on derecognition cannot be recorded as revenue.  The gain or loss on derecognition is calculated as the net disposal proceeds, minus the asset’s carrying value.