Depreciation
Date Submitted: 07/15/2002 15:01:50
Category: / Business & Economy / Accounting
Length: 5 pages (1389 words)
Category: / Business & Economy / Accounting
Length: 5 pages (1389 words)
*<Tab/>Introduction
Financial statements are usually prepared by an entity to communicate information about its financial performance, position, cash flows, and movement of equity to users and help them make decision. A statement of accounting policies is specified with these statements to help users understand how the information is collected and make it understandable and useful. In this essay, the author will attempt to explain the importance of understanding which accounting …
Is this Essay helpful? Join now to read this particular paper
and access over 480,000 just like this GET BETTER GRADES
and access over 480,000 just like this GET BETTER GRADES
…if they adopted different accounting policies. In all, when firms make choice of depreciation method to apply on property plant and equipment, they should consider the useful economic life of the asset, complexity of calculation, existence of residual value and also the accuracy, reliability information reflected to users as well.
Reference:
Caims, D. Financial Times. London: Aug 12, 1999. pg. 23
Ron, P. Accountancy. London: Oct 1, 2003 pg. 1
Bourke, D. H. Principles of Accounting. Ch3 and Ch8
Word Count: 1362
Need a custom written paper? Let our professional writers save your time.