Managing Tangible Non-Current Assets at Davlight Ltd

Understanding the Tangible Non-Current Assets Ledger

Davlight Ltd's tangible non-current assets ledger provides a snapshot of the original costs and accumulated depreciation of various assets as of 1st July 2015. The company holds significant investments in free hold land, buildings, plant & equipment, vehicles, and furniture & fittings.

Original Cost Breakdown: The free hold land has an original cost of Ksh 250 million, while the building was acquired at a cost of Ksh 300 million. Plant & equipment, vehicles, and furniture & fittings were procured for Ksh 15 million, Ksh 87.5 million, and Ksh 33.4 million respectively.

Depreciation Policy: Davlight Ltd follows a structured depreciation policy for its assets. Buildings are depreciated at 5% of cost or revaluation, plant & equipment at 10% of cost, vehicles at 20% of Net Book Value, and furniture & fittings at 12.5% of cost. A full year's depreciation charge is applied in the year of acquisition and none in the year of disposal.

Transactions: Significant transactions during the year ending on 30th June 2014 included the revaluation of freehold land and building at Ksh 375 million and Ksh 500 million respectively. Additionally, a vehicle purchased for Ksh 85 million in June 2011 was traded in at a value of Ksh 4 million for a new vehicle costing Ksh 110 million. A furniture item originally costing Ksh 15 million, fully depreciated, will be disposed of at Ksh 500,000.