Disposal of Arriva vehicles

[iMarkeh]

RE: Disposal of Arriva vehicles

(07/07/2020 09:14)EDB325 Wrote:  "In the eyes of the company accountants" sums the issue up rather well Rick. We've all visited smaller operators over the years and found a yard full of vehicles in advanced stages of decay, and which will clearly never go back into service. Why haven't they been sold for scrap ? Because they're still on the books as an "asset", and that can be an advantage for tax purposes rather than receiving an amount in cash for scrap, which could actually be less than the book value.

Right ok, this is making more sense to me. I stand by my point that it's strange many (of course some companies do) other companies don't do this and tend to rid the bus after a few months of official 'withdrawal from service'.

Thanks for the additional explanation.