Hello... When accounting for a trade-in of ppe, e.g. machinery, do you depreciate for the year of disposal? As in, I have come across questions and it would state 'depreciation charged in year of acquisition and none in year of disposal'. Since you treat a trade-in as a disposal I assumed you do not include this years depreciation when calculating the NBV of the machine you are trading in.. But I have seen solutions that have included it, so basically I'm confused :/ I understand the rest of the accounting treatment for the trade in and that you do depreciate the new machine. Working with IAS 16. Thanks for any help.

Yes, depreciation is recorded during the year of sale. The depreciation may be for a partial year, so you would have to calculate the amount of time expired during the year.