Non-current Assets and Depreciation
ICAN Financial Accounting

Eko Refineries Limited (ERL), a Lagos-based petroleum company, acquired the following non-current assets during the year ended 31 December 2023: (i) A refinery plant purchased on 1 January 2023 for N…

Abuja Metro Rail Authority (AMRA) is a public entity that constructs and manages rail infrastructure in the Federal Capital Territory. The following transactions and events relate to AMRA's non-curren…

Mr Chukwuemeka Obi recently qualified as a Chartered Accountant and has just been appointed as the Finance Manager of Kano Textile Mills Limited (KTML), a manufacturing company. On reviewing the compa…

A company purchased a motor vehicle on 1 April 2021 for ₦12,000,000. It is the company's policy to depreciate motor vehicles at 25% per annum on the reducing balance basis, with a full year's charge i…

Zenith Properties Nigeria Limited revalued a building on 31 December 2023. The building had an original cost of ₦45,000,000, accumulated depreciation of ₦9,000,000 and a remaining useful life of 30 ye…

Under IAS 36 Impairment of Assets, Okafor Steel Works Limited identified an item of plant with a carrying amount of ₦22,400,000. The estimated value in use is ₦19,800,000 and the fair value less costs…

A company purchased a motor vehicle on 1 January 2021 for ₦12,000,000. It is the company's policy to depreciate motor vehicles at 25% per annum on the reducing balance basis, with a full year's charge…

Adekunle Manufacturing Limited acquired a piece of machinery on 1 January 2022 at a cost of ₦18,500,000. The company incurred installation costs of ₦750,000 and a one-year maintenance contract of ₦300…

A company purchased a motor vehicle on 1 April 2021 for ₦12,000,000. It is the company's policy to depreciate motor vehicles at 25% per annum using the reducing balance method, with a full year's char…