1) Explain the difference between balance day adjustments required for accruals and balance day adjustments required for prepayments. Give an example of each.

2) Outline the reasons why an adjustment for depreciation expense is required at the end of each reporting period.

3) Distinguish between an allocation approach and a valuation approach to depreciation according to AASB1021 and AAS4.

4) Explain why it is important for estimates of the useful lives and expected residual values of depreciable non-current assets to be reviewed annually.