CIMA BA3 Syllabus B. RECORDING ACCOUNTING TRANSACTIONS - Non Current Assets (IAS 16) - Notes ^{17 / 35}

Non-current assets - all assets other than current assets shall be classified as non-current assets.

They are debit balances and are resources that are controlled by an entity to help it earn revenue

They include both tangible and intangible assets.

The accounting treatment of tangible non-current assets is covered by IAS 16: Property, Plant and Equipment

Types of Expenditure

Capital expenditure is the expenditure that is likely to increase the future earning capability of the organisation. Expenditure on non current assets is capital expenditure. 

Revenue expenditure is the expenditure that is associated with maintaining the present earning capability of the organisation.