Schedule of NCA

Question 1

What goes in the cost section of a schedule of a NCA

Answer 1

Start of year
Revaluation
Addition
(Disposals) - cost of NCA
End of year

Question 2

What goes in the depreciation section of a schedule of a NCA

Answer 2

Start of year
Elimination on revaluation (for revalued NCA)
Elimination on disposal (for disposed NCA)
Charge for the year

Question 3

Give 2 benefits of publishing a schedule of NCA

Answer 3

Transparency - ensures stakeholders have a clear understanding of a company’s long-term investments and asset health

helps management, investors, and analysts evaluate asset performance, useful life, depreciation, or impairments for strategic decisions

Question 4

Give 2 limitations of publishing a schedule of NCA

Answer 4

Regularly publishing detailed reports on NCAs requires significant resources, including time, skilled personnel etc (resource intensive)

A rigid schedule can make it difficult for businesses to report on NCA when urgent issues arise (e.g., a sudden impairment or disposal event), potentially delaying reporting

can be very detailed and technical, potentially overwhelming or confusing less-experienced users e.g. non-financial stakeholders

A fixed schedule might result in outdated asset info, especially if the company undergoes significant asset revaluation, disposal, or impairment in between reporting period