When a fully depreciated asset remains in use beyond the original estimate of useful life,
Article 43 No further depreciation shall be allowed in respect of fixed assets which can be continued to be used after having been fully depreciated.
A fully depreciated asset is an asset that has reached the end of its estimated useful life. No more depreciation is records for the asset.
If there is reasonable certainty that the lessee will obtain ownership of the leased asset when the lease term expires, the leased asset should be fully depreciated over its useful life.
American majors were able to slash capacity much faster than their European and Asian counterparts because many of their elderly planes were fully depreciated.
Once an asset has been fully depreciated, no more depreciation should be recorded on it, even though the property is in good condition and is still in use.
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