Factors Causing Depreciation in Non-Current Assets

Steps:

• Identify depreciation as the systematic allocation of an asset's cost over its useful life due to wear, obsolescence, or usage.
• Review statements 1-4, but note they are not provided in the query.
• Evaluate choices based on typical factors: physical deterioration (e.g., usage) and technological obsolescence cause depreciation; economic factors or initial purchase do not directly.
• Select option matching valid factors, but ambiguity prevents precise matching.

Why D is correct:

• Not enough information; statements 1-4 are missing, so cannot confirm D (2 and 4 only) ties to definitions like IAS 16, where depreciation reflects decline in future economic benefits from wear or obsolescence.

Why the others are wrong:

• A, B, C: All invalid due to missing statements; cannot assess inclusion of incorrect factors like market changes unrelated to asset use.

Final answer: Not enough information.