My companys equipment has been fully depreciated. But they can still function. What should we do?

A fully depreciated equipment means that the accumulated depreciation has reached the full depreciable basis (acquisition cost-salvage value). If this occurs, before the firm disposes the fully depreciated equipment, it will remain on balance sheet, with the cost and accumulated depreciation. But the firm cant recognize any depreciation expense on income statement anymore related to this equipment.

The reason it happened was because the firm made a mistake in the estimating the useful life of the equipment and didnt reevaluate this assumption annually as suggested by FASB. More importantly, how does this affect the relevance of the information provided to the investors? To discuss this, you may talk about from the following perspectives:

• Past performance: how did this affect your assessment about the firms past financial performance? (for example, from matching perspective: did the expenses incurred in the past match with the revenue recognized well?);
• Future forecast: what additional information you would like the firm to provide in this case to assist your forecasting better?