AFM: Concepts and Practice · Part A: Accounting Principles and Processes

Chapter 5: Depreciation; capital and revenue expenditure

How an asset’s cost is spread over the years it serves, by each method, and which spending is capital and which revenue.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 5.1Depreciation and the rulesp. 59
• 5.2Straight line, WDV and SYDp. 60
• 5.3Other methods, and changesp. 61
• 5.4Recording and disposalsp. 62
• 5.5Capital and revenuep. 63
• Exam traps and quick checksp. 64
• Practice: 16 questions in three roundsp. 65
• Answers, with every wrong option explainedp. 67
• Make it stickp. 69
• Chapter 5 on one pagep. 70

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.