787. Meaning of 'wasting asset'.

An asset with a predictable life1 not exceeding 50 years is a wasting asset2. So far as not immediately answered by the nature of the asset, the question what is the predictable life of an asset must, in relation to any disposal of the asset, be determined on the basis of the facts known or ascertainable at the time when the asset was acquired or provided by the person making the disposal3.

Plant4 and machinery must in every case be regarded as having a predictable life of less than 50 years, and in estimating that life it must be assumed