Non-current and Intangible Assets

What this unit covers

The resources follow a non-current asset through its life. They start with acquisition cost, move on to depreciation and revaluation, then finish with impairment, disposal and intangibles. Many items refer to IAS 16, IAS 36, IAS 38 and IAS 40, and a few mention ACCA or a SAP certification.

Where to start

Begin with the mind map PPE summary. It defines tangible items held for use and expected to last more than one period, then covers recognition and cost. Next, open the mind map Depreciation, which sets out why a company charges depreciation, how it is estimated, and the straight line and reducing balance methods. Depreciation Methods adds units of output and double declining balance.

Practise with quizzes

Once the maps feel familiar, test yourself. The quiz FA chapter 7 quick check asks you to split a lump-sum purchase of land, an office building and equipment using appraised values. The quiz Depreciation checks the basic idea of loss in value over useful economic life. For worked practice, try the note Exercise 10-3 (Acquisition Costs of Trucks).

1. Read a map on the topic.
2. Take a quiz on the same topic.
3. Return to the map for anything you missed.

Intangibles and systems

The Goodwill map explains value drawn from customers, efficiency, reputation and experience. Several maps and flashcard decks cover IAS 38 and impairment under IAS 36. The note SAP references walks through treating construction in progress in SAP, from creating the asset master to capturing costs on an internal order. Use Chapter 10 Key Terms to check terms such as amortisation, depletion and cost recovery.

Where it fits

This unit sits in the strand Financial Accounting: Assets, Liabilities and Equity, within Accounting and auditing. Pick one resource today, then make a map or deck of your own to fill any gap you find.