UITF Abstract 5 Transfers From Current Assets to Fixed Assets
Issued July 1992. Effective accounting periods ending on or after 23 December 1992.
UITF Abstract 5 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:
Synopsis
When assets are transferred from current assets to fixed assets the transfer should be made at the lower of cost and net realisable value. If net realisable value is lower than the carrying amount of the asset at the date of transfer the diminution in value should be charged to the profit and loss account.
Last updated 21 June 2015