1
Q
What are characteristics of non current assets?
A
For long term use, can be tangible or intangible, can generate income directly or indirectly, not liquid
2
Q
What are 2 types of expenditures?
A
Capital - acquisition of NCA or expense on existing asset to increase earning capacity (including purch, delivery, legal fees, trials/test)
Revenue - current asset, admin cost, maintenance of nca(repair, renewal, admin, training)
3
Q
What’s the purpose of depreciation?
A
To spread cost of asset over period it will be used
4
Q
What are depreciation methods ?
A
Straight line - same each year, cost less residual value over useful life or cost x depr%
Reducing balance - % x carrying amount
