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Formula sheet
Every formula in Non-current Assets, in one place. Print it and keep it beside you while you practise.
11.4 Accounting for the Purchase of Non-current Assets
Cost of a non-current asset
Cost of a non-current asset = Purchase price + all costs of bringing it to its intended use (e.g. delivery, installation, legal fees)
11.6 Accounting for Depreciation
Straight-line depreciation
Depreciation per year = (Cost − Scrap value) ÷ Useful life
Depreciation rate (straight-line)
Rate of depreciation (%) = [Depreciation per year ÷ (Cost − Scrap value)] × 100
Reducing-balance depreciation
Depreciation per year = Rate of depreciation (%) × Net book value at the start of the year
WHERE
Net book value = Cost − Accumulated depreciation so far
Net book value
Net book value = Cost − Accumulated depreciation