The carrying amount of a depreciable, non-current asset is its:
A) historic cost.
B) cost less residual amount.
C) cost or revalued amount less accumulated depreciation.
D) net realisable value.

Question

Quizplus · Accepted Answer

The carrying amount of a depreciable, non-current asset is its cost or revalued amount less accumulated depreciation. This reflects the current value of the asset after accounting for its expected useful life and wear and tear. Historic cost (A) is the original cost of acquiring the asset, while cost less residual amount (B) reflects the original cost of the asset minus the expected amount that it can be sold for at the end of its useful life. Net realisable value (D) represents the amount the asset can be sold for in its current condition, which may not be relevant for a depreciable asset that has been used over its useful life.

The Carrying Amount of a Depreciable, Non-Current Asset Is Its