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Sir regarding note given for non current asset I am confused that if write down means accumulated depreciation ?
plz explain the meaning of that note
https://www.accaglobal.com/content/dam/acca/global/PDF-students/2012/f7int_2009_jun_q.pdf
“The previous displays had cost $10 million and had been written down by $9 million” means that depreciation that has been accumulated on these assets since they were bought has aggregated $9m
In the statement of financial position (were the detail to be shown) you would see Cost 10m, Accumulated Depreciation $9m, Net Book Value $1m
Yes, in this context, “written down” means “depreciated” as in
” and had been depreciated by $9 million”
Sir is a change in classification of an item (eg dep.) is change in accounting policy actually Sir its mentioned in the answer plz explain ?
Yes, without looking at the question again, where depreciation has previously been charged as, for example, cost of sales and this year it has been split as, say, 60% admin expenses, 20% distribution costs and 20% cost of sales, that would represent a change in policy.
Simply because it destroys any concept of comparability between this year and last
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