AASB 116 Property, Plant and Equipment 67-72: Derecognition: remove the carrying amount on disposal or when no further benefits are expected, recognise the gain or loss (never as revenue, except for routinely sold rental assets transferred to inventory) when the recipient obtains control under AASB 15, measure consideration at the AASB 15 transaction price, and derecognise replaced parts

What does 67-72 require?

The carrying amount of an item is removed from the books when the item is disposed of or when the entity no longer expects any economic benefit from using or selling it. The resulting gain or loss, the difference between net disposal proceeds and carrying amount, is recognised in profit or loss at derecognition (unless AASB 16 directs otherwise for a sale and leaseback) and gains are not presented as revenue. The exception is an entity that routinely sells assets it has rented out in the ordinary course of business: those assets move to inventory at carrying amount when rental ends and they become held for sale, and the sale proceeds are revenue under AASB 15 (AASB 5 does not apply to that transfer). Disposal may be by sale, finance lease or donation, and its date is when the recipient obtains control under the AASB 15 performance obligation guidance; sale and leaseback disposals follow AASB 16. Consideration in the gain or loss is determined using the AASB 15 transaction price rules in paragraphs 47 to 72 of that Standard, with later changes in the estimate accounted for as changes in transaction price. Where a replacement part is capitalised, the replaced part is derecognised whether or not it was depreciated separately, using the replacement cost as a proxy for its original cost if necessary.