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AC1103
Week 5 (Covered in W6)
| Term | Definition |
|---|---|
| Accumulated Depreciation | Cumulative record of the yearly depreciation of assets |
| Carrying Amount | Other wise known as Net Book Value. It represents the recorded cost of assets less the value of the accumulated depreciation account |
| Depreciable Amount | The cost of the asset less the residual value |
| Intangible Assets | Non-monetary assets that do not have a physical substance |
| Tangible Assets | Assets can be seen and touched |
| Value in use | The present value of cash flows |
| What does Net Book Value of a non-current asset represent? | Its undepreciated cost |
| Depreciation | A way of writing off the cost of non-current assets over their estimated revenue generating period |