Cambridge 0452 and 0985 · Sub-topic 4.2
Depreciation and disposal of non-current assets
The 5 skills the syllabus asks for, the slips that cost marks, and how our teachers explain it.
What students must be able to do
- Define depreciation and explain why it is accounted for.
- Use the straight-line, reducing balance and revaluation methods.
- Prepare ledger accounts and journals for depreciation, and for purchase and sale of non-current assets.
- Use the asset, provision for depreciation and disposal accounts.
- From 2027: choose suitable methods for different assets and calculate profit or loss on disposal.
Official wording: Cambridge IGCSE Accounting 0452: syllabus for 2027-2029 (Version 1), page 14; Cambridge IGCSE Accounting 0452: syllabus for examination in 2026 (Version 2, December 2025), page 13. See all sources.
How our teachers teach it
Depreciation questions are really three questions in one: how much to charge, how to record it, and what to do when the asset leaves. Our teachers have students build the three ledger accounts in a fixed order and always transfer the disposal balance last. Reading the policy sentence in the question, such as the treatment of assets bought or sold mid-year, decides most marks.
If any of these slips sound familiar, we can help. A teacher can mark your child's answers on depreciation and disposal of non-current assets line by line and show where the marks go. Book a trial class.
How the wording changed for 2027
The 2027-2029 syllabus states the three ledger accounts (non-current asset, provision for depreciation, disposal) explicitly. It also adds choosing appropriate methods for different assets, and names calculating profit or loss on disposal. The 2026 syllabus covered disposals with disposal accounts.
Where it is examined
Depreciation and disposal of non-current assets can appear in either paper, as a short question or as part of a longer task. Cambridge bases both papers on the whole syllabus. See the guides to Paper 1 and Paper 2 for the format.
Sources: Cambridge IGCSE Accounting 0452: syllabus for 2027-2029 (Version 1), pages 9, 22. See all sources.
Practise it
- Key terms: Depreciation, Straight-line method, Reducing balance method, Disposal of a non-current asset, Provision for depreciation, Carrying amount
- Skills: How to calculate depreciation (straight-line method), How to calculate depreciation (reducing balance method), How to calculate profit or loss on disposal
- Layouts: Disposal of a non-current asset account format, Provision for depreciation account format
- Worked examples: depreciation
- Practice questions: depreciation
- One-to-one Cambridge 0452 tuition
Other sub-topics in topic 4
Depreciation and disposal of non-current assets: questions
Which depreciation methods are named?
Does the 0985 (9 to 1) syllabus cover depreciation and disposal of non-current assets too?
Which syllabus numbering should I use?
Get help with depreciation and disposal of non-current assets
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