How do we measure non-current assets?

Each class of non-current assets can be carried at either cost of fair value EXCEPT

Goodwill cannot be revalued upwards
Identifiable intangibles can be revalued upwards only if an active and liquid market exists
Financial instruments are measured at their fair value
Agricultural assets are measured at their net market value

Carrying amt of non-current assets at cost must be no more than their recoverable amt
Recoverable amount is higher of expected fair value less costs to sell, and value in use
Value in use refers to present value of expected future cash flows associated with the use and subsequent disposal of the asset
Impairment loss = value in use - recoverable amt
Any impairment loss (an expense) must be recognised immediately
All assets with limited useful lives must be depreciated
Land is not depreciated

Depreciation is the allocation of the depreciable amount of the life of the asset

On balance sheet, depreciable assets are carried at their cost (or fair value) less accumulated depreciation

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