Australian Government
Australian Accounting Standards Board
Thursday, October 16, 2025
AASB staff have prepared a Staff FAQs document in response to questions from local governments.
The FAQs clarify how depreciation under AASB 116 relates to asset maintenance and asset replacement, and explain that non-cash expenses like depreciation do not affect an entity’s solvency and long-term financial sustainability.
These FAQs are designed to support stakeholders in applying and understanding AASB Standards. They do not amend or interpret the Standards.