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End of attention
The termination value of a unit of in-house software you still hold but stop using and expect never to use again, or decide never to use, is zero - see In-house software.
For any other asset, if you stop using it and expect never to use it again but still hold it, the termination value is the market value when you stop using it. For a depreciating asset you decide never to use but still hold, the termination value is the market value when you make the decision.
Death of the holder
If you die and a depreciating asset starts to be held by your legal personal representative (such as the executor of your estate), a balancing adjustment event occurs. The termination value of the asset is its adjustable value on the day you die. If you have allocated the asset to a low-value pool, the termination value is so much of the closing balance of the pool for the income year in which you die that is reasonably attributable to the asset.
If the asset passes directly to a beneficiary of your estate or to a surviving joint tenant, the termination value is the asset's market value on the day you die.
Last modified: 31 Oct 2005QC 27521