I'm not up to this part in the course (if it even is in the course) but how do accountants classify assets that are affected by depreciation but their value goes up instead of down. For example, rare car dealers or antiques or something. Do they just list their assets at an agreed value or what?
This isn't covered in the VCE course, but just to satisfy your curiosity...
In Australia, using Fair Value accounting you can increase the book value of the asset to above its original purchase price. The other side of the ledger entry goes to a special type of Owner's Equity account called an "Asset Revaluation Reserve".
e.g. Value of antique car increases from $10,000 to $15,000:
DR Antique Car $5,000
CR Asset Revaluation Reserve $5,000
I don't want to explain too much or it'll be confusing, but 'appreciating' the asset in this way isn't part of the depreciation system that you guys are learning... it's part of a system that works
alongside depreciation.
Answering another point you questioned... they don't list their assets at an "agreed value" per se, but at "fair value". There are a lot of rules accountants have to follow in determining fair value, but you get the idea.
Really good questions
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It's great to see you're already thinking about stuff that you don't learn until you get to university.