ACCA FA Classroom - Syllabus D5. Depreciation 5 / 10
a) Understand and explain the purpose of depreciation.
b) Calculate the charge for depreciation using straight line and reducing balance methods.
c) Identify the circumstances where different methods of depreciation would be appropriate.
d) Illustrate how depreciation expense and accumulated depreciation are recorded in ledger accounts.
e) Calculate depreciation on a revalued noncurrent asset including the transfer of excess depreciation between the revaluation surplus and retained earnings.
f) Calculate the adjustments to depreciation necessary if changes are made in the estimated useful life and/or residual value of a noncurrent asset.
g) Record depreciation in the statement of profit or loss and statement of financial position.