F3 Chapter 12 Tangible Non-Current Assets

F3 Chapter 12 Tangible Non-Current Assets Provided by Academy of Professional Accounting (APA) Professional Accounting Education Copyright ?? ACCAspace.comACCAspace 中国ACCA特许公认会计师教育平台 ACCA F3 Financial Accounting (FA) 财务会计 第十二讲 ACCA Lecturer: Carrie NI Copyright ?? ACCAspace.comACCAspace 中国ACCA特许公认会计师教育平台 2 D4-D5: Tangible Non-Current Assets ?? Non-current assets (NCA) and current assets (CA) ?? Capital and revenue expenditure ?? Property, plant and equipment ?? Depreciation accounting ?? Revaluation of non-current assets ?? Non-current asset disposals ?? Disclosures in financial statements ?? The asset register Copyright ?? ACCAspace.comACCAspace 中国ACCA特许公认会计师教育平 台 3 NCA & CA ?? Non-current assets are assets that are bought by the business for use in the long term. Non-current assets include tangible assets and intangible assets. ?? Current assets are assets that will be realised, consumed or sold in the normal operating cycle of the business or are assets held primarily for trading. Current assets are assets which will be converted into cash in the near future (in the short term). Copyright ?? ACCAspace.comACCAspace 中国ACCA特许公认会计师教育平 台 4 Capital and Revenue Expenditure Expenditure by a business can be classified as either capital expenditure or revenue. Capital expenditure ?? Capital expenditure results in the acquisition of non- current assets, or an improvement in their earning capacity. Dr non-current assets (SOFP) Cr cash / payables Copyright ?? ACCAspace.comACCAspace 中国ACCA特许公认会计师教育平 台 5 Capital and Revenue Expenditure Revenue expenditure ?? Expenses ?? Purchases ?? Maintenance and repairs to non-current assets which do not result in extra capacity to earn income (7>