Obsolete means that the asset exists, but has been eliminated from use, obsolete and unusable. It is the loss of use value of the asset.
Replacement is the loss of an asset due to loss, damage, and other unusual events. Assets that are reported as lost may be repaired and can continue to be used or sold.
Extended Reading
An asset is reported as lost, i.e., a declared asset loss.
For example, goods that are broken, expired, and can't be returned to the supplier or sold can be reported as a loss. Or the number of inventory in the system than the actual inventory out of the number of more, and can not find those commodities where to go, these commodities can be used to report loss orders to report it as a loss.
Asset obsolescence, i.e., assets (merchandise, equipment, artifacts, etc.) are obsolete because they can no longer be used or are substandard.
For assets scrapped or destroyed, the net book value of the assets, less the residual value, insurance compensation and compensation of the responsible person, the remaining part of the balance, based on the following evidence
Determination of the loss:
(a) the identification certificate issued by the relevant departments within the enterprise;
(b) a single item or batch of large amounts of assets scrapped or destroyed, the enterprise should be made item by item to make a special statement, and (iii) force majeure reasons (natural disasters, accidents, war, etc.) caused by the destruction and scrapping of assets, there should be an appraisal report issued by the relevant functional departments, such as the fire department issued by the proof of the disaster, the public security department issued by the accident scene processing report, vehicle damage certificate, the housing department of the house demolition certificate, the boiler, elevator and other security departments, and so on. Boilers, elevators and other safety inspection department inspection reports, etc.;
(d) the scrapping of business assets, the destruction of the situation description and internal approval documents;
(e) involves an insurance claim, there should be an insurance company to settle the claim description.