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13 Cards in this Set
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- Back
- 3rd side (hint)
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Depreciation. |
Device used in accounting to allocate/ spread the cost of a non-current fixed asset over its useful life. |
Spread / allocate Asser |
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Asset |
Present economic resource controlled by the entity as a result of past events |
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Economic resource |
Right that has the potential to produce economic benefits |
Benefits |
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Non-current asset |
Are tangible, intangible and financial assets of a long- term nature. |
Long term nature. |
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Examples of tangible non- current assets. |
Vehicles, land and buildings, office equipment |
Long term |
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Examples of intangible non-current assets? |
Trademarks, brand names purchased, patents, publishing rights and newspaper titles |
Can’t touch |
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Cost of non-current asset? |
The purchase price or amount spent on its production together with any costs directly attributable to bringing the non current asset to working condition for its intended use. |
Everything |
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Accounting equation for repair of non current asset? |
Asset of cash decreases, decrease in ownership interest caused by expense |
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Accounting equation for improvement on non current asset? |
Asset if cash decreases but replaced by asset of improvement and no effect on ownership interest |
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Non current investment? |
Investment which is held for long-term purposes such as shares in another company which has close trading links with the investing company |
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Tangible non current assets |
Such as property plant and equipment are assets that are physical substance and are held for use in the production or supply of goods or services for rental to others or for administrative purposes on a continuing basis in the reporting entity’s activities. |
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Intangible asset? |
identifiable non- monetary assets of out physical substance |
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Why do users need unfit in cost of asset and accumulated depreciation as separate components of netbook value? |
Allows users to estimate the proportion of assets life remaining |
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