Understanding asset retirements
Every asset needs to be retired at some point of its useful life. It can either serve its entire useful life and then retire or retire before completing its useful life. Consider two scenarios to understand this. A laptop may be retired at the end of its (hypothetical) useful life of five years. It is quite obsolete now and doesn't serve any useful purpose. On the other hand, a truck (with a hypothetical life of 10 years) can meet an accident just a year after its purchase and get completely damaged without any chance of repair. Thus it needs to be retired prematurely. We'll later see various methods by which we can dispose off the assets after retirement.
Just like asset transfers, we can retire assets fully or ...
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