Unit 2 - Area of Study 3: Accounting for and managing non-current assets

Outcome 3

Record and report for non-current assets and depreciation.

Examples of lear​ning activities

• Based on data provided in a business scenario, calculate the straight-line depreciation for an asset and identify the effects it has on the financial reports.
• Calculate, record and report depreciation for a range of non-current assets based on a business scenario.
• Considering the purchase of new machinery, model the potential likely effects of the purchase of different options. Make a recommendation to the owner of the business based on your findings/results.
• 
  Using spreadsheets, identify, classify, record and report financial data regarding the potential effects on the financial reports of a business, choosing between two vehicle options: petrol or diesel.
• Discuss the importance of qualitative characteristics such as faithful representation in depreciation. Use examples to illustrate your views.