non current asset

In practice the company will likely have a record for each individual asset within the class so there’s no issue – depreciation will be calculated on an asset by asset basis

If that’s too much trouble, the method of depreciating makes a difference

If it’s a reducing balance basis, you have set me up with an asset that has a carrying value of $42,000 (say reducing balance rate is 16%) and now we have a new $5,000 asset to add to the class

$42,000 + $5,000 = $47,000

Depreciation for this year will be 16% of $47,000 = $7,520 leaving us with assets that cost $55,000, accumulated depreciation of $15,520 and a carrying value of $39,480

Next year, with no further additions, depreciation will be $6,317 (16% x $39,480)

If the method is straight line depreciation, we shall need to separate into respective years of purchase all the assets in the class

Again, with a 16% depreciation rate, the original assets will be depreciated by 16% x $50,000 = $8,000 and the new asset will be depreciated by 16% x $5,000 = $800

That gives us assets that cost $55,000, accumulated depreciation of $16,800 and carrying value of $38,200

Now you could have added the $5,000 purchase to the $50,000 original cost and arrived at the same answer (Cost $55,000, depreciation brought forward $8,000, depreciation for the year 16% x $55,000 = $8,800, accumulated depreciation $16,800 and a carrying value of $38,200)

But that way requires you (in practice) to be careful not to depreciate any asset to an amount below its original cost

Treatment in the statement of financial position is not an issue, whichever method is used for depreciation – we simply show TNCA at aggregate carrying value

OK?