Limited Company Accounting

Schedule of Non-Current Assets

What Is the Schedule of Non-Current Assets?

The schedule of non-current assets is a note to the financial statements (not a financial statement itself). It provides a detailed breakdown of how the cost and accumulated depreciation of each class of non-current asset changed during the year.

It avoids overcomplicating the statement of financial position by showing only closing NBV there, with the full detail here.

Structure

The schedule has three sections and a column for each class of asset:

                        Land &      Plant &     Motor
                       Buildings   Machinery   Vehicles    Total
                           £           £           £          £
COST
Bal b/d                  xxx         xxx         xxx        xxx
Additions                xxx         xxx         xxx        xxx
Disposals               (xxx)       (xxx)       (xxx)      (xxx)
Revaluation              xxx           —           —         xxx
Bal c/d                  xxx         xxx         xxx        xxx

DEPRECIATION
Bal b/d                  xxx         xxx         xxx        xxx
Charge for year          xxx         xxx         xxx        xxx
Eliminated on disposal  (xxx)       (xxx)       (xxx)      (xxx)
Eliminated on revaluation(xxx)         —           —        (xxx)
Bal c/d                  xxx         xxx         xxx        xxx

NET BOOK VALUE
NBV b/d                  xxx         xxx         xxx        xxx
NBV c/d                  xxx         xxx         xxx        xxx

• NBV b/d = Cost b/d − Depreciation b/d
• NBV c/d = Cost c/d − Depreciation c/d
• The NBV c/d figures appear in the statement of financial position

Key Rules for Each Row

What Does NOT Appear in the Schedule

• Sale proceeds from disposals — these go directly to the bank/cash account
• Profit or loss on disposal — this appears in the income statement only

Worked Example: Bradshaw Ltd (Year ended 31 May 2027)

Opening balances:

• Land & buildings: Cost £625 000, Depreciation £187 500, NBV £437 500
• Plant & machinery: Cost £320 000, Depreciation £198 500, NBV £121 500
• Motor vehicles: Cost £95 000, Depreciation £46 750, NBV £48 250

Transactions during the year:

• Land revalued to £805 000 on 1 June
• Plant purchased 1 March for £74 000
• Motor vehicle sold 28 February (originally cost £32 000; accumulated depreciation at disposal £11 520)

Depreciation policy: Land 50-year straight-line; Plant 25% reducing balance; Vehicles 20% reducing balance. Full year charged in year of purchase; none in year of sale.

                        Land &      Plant &     Motor
                       Buildings   Machinery   Vehicles    Total
                           £           £           £          £
COST
Bal b/d                 625 000     320 000      95 000  1 040 000
Additions                    —       74 000           —     74 000
Disposals                    —           —      (32 000)   (32 000)
Revaluation             180 000          —           —    180 000
Bal c/d                 805 000     394 000      63 000  1 262 000

DEPRECIATION
Bal b/d                 187 500     198 500      46 750    432 750
Charge for year          23 000      48 875       5 554     77 429
Elim. on disposal            —           —      (11 520)   (11 520)
Elim. on revaluation   (187 500)        —           —   (187 500)
Bal c/d                  23 000     247 375      40 784    311 159

NET BOOK VALUE
NBV b/d                 437 500     121 500      48 250    607 250
NBV c/d                 782 000     146 625      22 216    950 841

Key calculations:

• Land revaluation: new value £805 000 − old NBV £437 500 = £367 500 increase in Cost; old depreciation £187 500 eliminated
• New land depreciation: £805 000 ÷ 35 remaining years = £23 000
• Plant depreciation (reducing balance): (£121 500 + £74 000) × 25% = £48 875
• Vehicle depreciation: (£48 250 − £20 480) × 20% = £5 554 (where £20 480 = NBV of sold vehicle)