​​Non- Current Asset

• ​​Asset used in business which have a useful life more than one (1) year.

• Office equipment

• ​Motor vehicles

• ​Machinery

• ​Land and buildings

• ​fixtures and fittings

​Fundamental Accounting Concept for Depreciation

• ​Going concern concept - assumes that a business will operates indefinitely

• ​Accounting period concept - cost incurred in an accounting period is matched with revenues earned in that period

• ​Historical cost concept - assets are recorded at cost

​Causes of Depreciation

​Physical Factor

​- wear & tear

​Erasian, rust, rot & decay

​Economic Factor

​- Obsolescene

​- Inadequacy

​Time Factor

​- Effluxion of time

​Depletion

​- The value of wasting assets decrease as more extractions take place

​done

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