Schedule of Non-current Assets

In a company's published accounts, the statement of financial position shows property, plant and equipment (PPE) as a single carrying amount. The detail behind it is given in a schedule (note) of non-current assets, often presented as a grid with a column per asset class (e.g. land & buildings, plant & machinery, motor vehicles) and rows for the movements.

The schedule has two halves:

1. a cost (or valuation) section — showing how the gross cost changed;
2. an accumulated depreciation section — showing how the depreciation built up.

The difference between the two closing figures is the carrying amount:

$\text{Carrying amount} = \text{Closing cost} - \text{Closing accumulated depreciation}$

This is the figure carried into the statement of financial position. The schedule provides transparency about additions, disposals and depreciation during the year.

The cost half tracks the gross cost of the assets:

$\text{Closing cost} = \text{Opening cost} + \text{Additions} - \text{Cost of disposals}$

• Opening cost — the cost brought forward from last year.
• Additions — assets bought during the year, at cost (including delivery and installation, which are capitalised).
• Cost of disposals — the original cost of any asset sold or scrapped (removed in full).
• (Revaluation — if an asset is revalued, the cost line may be restated to the valuation.)

It is essential to remove the full original cost of a disposed asset from this section — not the proceeds and not the carrying amount. The matching accumulated depreciation is removed from the other half.

The accumulated depreciation half tracks the depreciation built up:

$\text{Closing acc. dep.} = \text{Opening acc. dep.} + \text{Charge for the year} - \text{Depreciation on disposals}$

• Opening accumulated depreciation — brought forward.
• Charge for the year — the year's depreciation expense (which also appears in the statement of profit or loss).
• Depreciation on disposals — the accumulated depreciation to date on any asset sold (removed in full, to match removing its cost).

When an asset is disposed of, you remove both its cost (from the cost half) and its accumulated depreciation (from this half). The difference between them is the asset's carrying amount, which is compared with the proceeds to find the profit or loss on disposal (recorded separately in the profit statement).

The carrying amount at the year-end is:

$\text{Carrying amount} = \text{Closing cost} - \text{Closing accumulated depreciation}$

This is the figure for the statement of financial position. The total carrying amount across all asset classes is the PPE figure.

Revaluation. When a non-current asset (typically land and buildings) is revalued upward:

• the cost/valuation line is increased to the new valuation;
• the revaluation surplus is credited to a revaluation reserve (equity), via other comprehensive income;
• existing accumulated depreciation on that asset is often eliminated (reset), and future depreciation is based on the revalued amount over the remaining life.

So the schedule of non-current assets links to three statements: the profit statement (depreciation charge and disposal profit/loss), the statement of financial position (carrying amount) and equity (revaluation reserve). It is a core Paper 3 reconciliation.