It Is Expected That the Service Potential of a Non-Current

question 54

Multiple Choice

It is expected that the service potential of a non-current asset will decline over time.The appropriate accounting treatment is to:

• A) amortise the asset over its useful life.
• B) disclose the effect in the notes to the statement of financial position if it is material in nature.
• C) write-off the asset.
• D) accrue the difference as a payable in adjusting entries at the end of the period.

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