Acca financial Accounting (FA) Study Text ac ca (FA)

Closing inventory 

20 

 

9.32 186.40 

 

 

Rounding – ignore 

0.19 

 ––––– 

  

––––– 

 

 

 

 

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Inventory 

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Non

­

current assets: 

acquisition and 

depreciation 

Chapter learning objectives 

Upon completion of this chapter you will be able to: 

•

 define 

non

­

current assets 

•

 

explain the difference between capital and revenue 

expenditure 

•

 

explain the purpose of an asset register 

•

 

prepare ledger entries to record the acquisition of 

non

­

current assets 

•

 

define, calculate and record the depreciation charge on non

­

current assets. 

 

 

PER

 

One of the PER performance objectives (PO6) is 

to record and process transactions and events. 

Working through this chapter should help you 

understand how to demonstrate that objective. 

 

Chapter 

7 

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Non-current assets: acquisition and depreciation 

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1 Overview 

 

 

 

Introduction 

 

This chapter defines what a non

­

current asset is, before considering how 

non

­

current assets are measured and classified for inclusion in the 

financial statements. Importantly, this chapter also considers the 

accounting requirements of IAS 16 Property, plant and equipment.  

Much of the content of this chapter is new. However, it is an important 

foundation for your future ACCA studies, in particular for Financial 

Reporting and Strategic Business Reporting.