Document ID: chunk:federal_register_of_legislation:F2023C00192:body:0:p17
Version: federal_register_of_legislation:F2023C00192
Segment Type: other
Provision Reference: 
Character Range: 41206–43937

recoverable amount of an asset, and when it recognises, or reverses the recognition of, an impairment loss.
64 [Deleted]

Compensation for impairment
65 Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up shall be included in profit or loss when the compensation becomes receivable.
66 Impairments or losses of items of property, plant and equipment, related claims for or payments of compensation from third parties and any subsequent purchase or construction of replacement assets are separate economic events and are accounted for separately as follows:
(a) impairments of items of property, plant and equipment are recognised in accordance with AASB 136;
(b) derecognition of items of property, plant and equipment retired or disposed of is determined in accordance with this Standard;
(c) compensation from third parties for items of property, plant and equipment that were impaired, lost or given up is included in determining profit or loss when it becomes receivable; and
(d) the cost of items of property, plant and equipment restored, purchased or constructed as replacements is determined in accordance with this Standard.

Derecognition
67 The carrying amount of an item of property, plant and equipment shall be derecognised:
(a) on disposal; or
(b) when no future economic benefits are expected from its use or disposal.
68 The gain or loss arising from the derecognition of an item of property, plant and equipment shall be included in profit or loss when the item is derecognised (unless AASB 16 Leases requires otherwise on a sale and leaseback). Gains shall not be classified as revenue.
68A However, an entity that, in the course of its ordinary activities, routinely sells items of property, plant and equipment that it has held for rental to others shall transfer such assets to inventories at their carrying amount when they cease to be rented and become held for sale. The proceeds from the sale of such assets shall be recognised as revenue in accordance with AASB 15 Revenue from Contracts with Customers. AASB 5 does not apply when assets that are held for sale in the ordinary course of business are transferred to inventories.
69 The disposal of an item of property, plant and equipment may occur in a variety of ways (eg by sale, by entering into a finance lease or by donation). The date of disposal of an item of property, plant and equipment is the date the recipient obtains control of that item in accordance with the requirements for determining when a performance obligation is satisfied in AASB 15. AASB 16 applies to disposal by a sale and leaseback.
70 If, under the recognition principle in paragraph 7, an entity recognises in the