FRK 122: Melissa vdm
Chapter 1
Non-Current Assets
Summary:
Non- Current Assets:
Definition: Present economic resource controlled by the entity as
a result of past events
Recognition Criteria: Relevant? Faithful representation?
Measurement of noncurrent assets:
+ Initial measurement = purchase price + attributable cost:
Purchase Price (AFTER deducting discounts, adding import duties)
Directly Attributable cost (to bring the asset to a condition and
location to be used)
+ Subsequent measurement:
(Cost Model) Cost - accumulated depreciation/amortisation -
accumulated impairment losses = Carrying amount.
Depreciation = tangible assets, Amortisation = intangible assets
Summary:
Asset Realisation: the process of derecognising an asset
when the asset is scrapped/sold/traded-in
5 Steps of asset realisation:
1) Depreciation for the year
o Calculate the depreciation of the asset from the
beginning of the current year up to the date of
removal
Chapter 1
Non-Current Assets
Summary:
Non- Current Assets:
Definition: Present economic resource controlled by the entity as
a result of past events
Recognition Criteria: Relevant? Faithful representation?
Measurement of noncurrent assets:
+ Initial measurement = purchase price + attributable cost:
Purchase Price (AFTER deducting discounts, adding import duties)
Directly Attributable cost (to bring the asset to a condition and
location to be used)
+ Subsequent measurement:
(Cost Model) Cost - accumulated depreciation/amortisation -
accumulated impairment losses = Carrying amount.
Depreciation = tangible assets, Amortisation = intangible assets
Summary:
Asset Realisation: the process of derecognising an asset
when the asset is scrapped/sold/traded-in
5 Steps of asset realisation:
1) Depreciation for the year
o Calculate the depreciation of the asset from the
beginning of the current year up to the date of
removal
