Page 71 - Accountancy for Advanced Secondary Schools Teachers Guide Form Five

Chapter teaching guide
Here are the main issues to consider on this chapter:

1. Subsequent measurement
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Depreciation: Explain the systematic allocation of the depreciable
amount of an asset over its useful life for tangible assets
(depreciation).

2. Depreciation methods

(a) Straight-line method: Describe how depreciation is
calculated evenly over the useful life of the asset.
(b) Declining balance method: Explain accelerated depreciation
methods where a higher depreciation expense is recognised
in the earlier years of the asset’s life.
(c) Units of production method: Discuss how depreciation is
based on the actual usage or output of the asset.
3. Disposal of non-current assets

(a) Derecognition: Explain the accounting treatment when a
non-current asset is disposed of, including the removal from
the balance sheet.
(b) Gains and losses on disposal: Teach how to calculate and
record the gain or loss on disposal, which is the difference
between the net disposal proceeds and the carrying amount
of the asset.

4. Financial reporting and disclosure
(a) Presentation in financial statements: Teach how non-
current assets are presented on the balance sheet and the
related disclosures in the notes to the financial statements.

Teacher’s Guide Form Five
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