What should be the accounting treatment of a Machinery, which is fully depreciated but still in working condition ?

Answer in IAS 8 (Changes in polocies, estimation & error correction). It is consider change in estimation (estimation in usefull life) and carryforward.

Hi, 

In case an asset has been fully depreciated, it still needs to be reported on your Balance Sheet. 

The machinery should be shown at cost in the Property, Plant & equipment section of the Balance Sheet. You also need to show the accumulated depreciation in this section. Cost Less Depreciation will result in the asset being shown at net amount of zero which will be the book value.

 

You will have to continue to report this until the company decides to dispose of the machinery.

The depreciation expense will be Zero for the remaining useful life and the balance sheet will show the historical cost and the accumulated depreciation will show same figure and the net balance will be Zero as well.