11. NON CURRENT ASSETS AND DEPRECIATION

Question 1

What is a non current asset?

What are the two categories of non current asset?

Answer 1

-An asset purchased for use on a continuing basis, normally over 1 year

-Tangible and Intangible

Question 2

Where are non current assets recorded?

Answer 2

In the statement of financial position

Question 3

What is included in the cost recorded of a non current asset?

Answer 3

All the costs incurred in bringing the asset into use, e.g. delivery, installation and set up costs (NOT training)

Question 4

What is depreciation?

Answer 4

The spreading of the depreciable amount of an asset over its estimated useful life - spreading cost of non current asset on a systematic basis