6. Non Current Assets

Question 1

What is measurement

Answer 1

Process of determining the monetary value of items in financial statements, like SoFP and Income

Question 2

What is the historical cost measurement basis

Answer 2

Info about the elements that are derived from the historical price of transaction/ event that gave a rise overtime value of assets and liabilities are adjusted

Question 3

What is the Current value measurement basis and the different types

Answer 3

Monetary info about elements to reflect worth now. Include:
- Fair Value
- Current Cost
- Present value

Question 4

Fair value

Answer 4

Price received if you sell an asset/ transfer liability, in an orderly transaction
- like market price

Question 5

Current costs

Answer 5

/ replacement costs
Reflect the current amout paid to acquire equivalent assets receved to take on equivalent liability

Question 6

Present value

Answer 6

/ value in use
Present value of cash flows/ other benefits entity will recieve during a lifetime of assets/ liabilities

Question 7

What are non current assets

Answer 7

Resources controlled by entity as a result of past events, future economic benefits expected
- Held for more than 1 year, Capitalised rather than expense

e.g) Long term investments, Property, Plant and equipment, Intangible non current assets

Question 8

What are intangible non-current assets

Answer 8

Non - monetary assets without physical substance

e.g investment

Question 9

Current Assets

Answer 9

Expected to be sold, consumed or exhasted through operation in 1 year, fund day to day operations

e.g Cash, trade recievables, inventory, prepayments

Question 10

What is capital expenditure?

Answer 10

Result o