There is hardly any practitioner or auditor immune to the realm of non current assets (henceforth NCAs). Accountancy candidates are sometimes overwhelmed by the fact that the same piece of property’s treatment may be governed by more than one financial reporting standards. Whereas the concerns are understandable, the reason why this happens is because each standard deals with its own “part of the deal” of a transaction.
The purpose of this article is to clarify a series of issues related to the recognition and treatment of NCAs based on the nature of the transaction and the party in whose financial statements this transaction is recognized. It is not an exhaustive article on NCAs, however I refer to all material aspects deemed necessary to gain an insight into the mechanics of the mainstream transactions of which NCAs are a part.