The manager of your company said that he and his board members do not understand the depreciation of fixed assets. He asked you to explain the meaning of depreciation to the board of directors. Explain the issue of depreciation with examples.
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- You are conducting an accounting research project for your manager. Your manager has asked you to determine the appropriate U.S. GAAP that specifies how your company should recognize and value a newly purchased piece of equipment on the company's balance sheet. Your manager also wants you to determine the GAAP guidance for how the equipment should be depreciated. Your manager has a lot of knowledge and experience in accounting, and has heard about, but has never used. Directions Use the FASB Accounting Standards Codification system to conduct the research your manager has assigned to you. Use the Codification to determine how to recognize, value, and depreciate a piece of equipment. Be prepared to show your manager the specific FASB ASC references that provide the appropriate guidance Also prepare a brief memo explaining to your manager the different levels of the Codification and how to use the Codification system.What is depreciation? Why are depreciation methods important in the business arena? Explain the differences among the depreciation methods covered in chapter 10. Based on your evaluation, what is the best method of depreciation and why? What is the least used and Why?Neville Enterprises has a number of fully depreciated assets that are still being used in the main operations of the business. Because the assets are fully depreciated, the president of the company decides not to show them on the balance sheet or disclose this information in the notes. Evaluate this procedure.
- Which of the following statements is/are correct? 1. Depreciation represents the loss in market value of an asset. II. The statement of financial position is likely to do a better job at capturing the assets/resources of a retailer (such as a supermarket) than a professional services firm (such as a law firm or professional accountancy firm). III. All tangible non-current assets go through the process of depreciation. IV. The following will have a negative impact on profitability in a given year: (a) increasing the allowance for trade receivables on the balance sheet, (b) reducing the useful life of depreciable non-current assets, (c) writing down closing inventory. a. Another combination of statements not shown among the other answers. b. All of the statements are correct. c. (II) and (IV) d. (I) and (III) e. (I), (II) and (III) f. (I), (III) and (IV)Which one of the following statements is true? a. Financial statement readers cannot determine whether the depreciation method used by a company is appropriate. b. Financial statement readers can determine the useful lives of assets depreciated during the reported period. c. Financial statement readers cannot determine the depreciation expense for the reported period d. Financial statement readers can accurately estimate the effect an alternative depreciation method would have on income.raxton Inc. is considering the write-off of a limited-life intangible because of its lack of profitability. Explain to the management of Braxton how to determine whether a write-off is permitted.
- What the advisory officer do if he didn't success after following the steps or doing reconstruction for the company?Braxton Inc. is considering the write-off of a limited-life intangible because of its lack of profitability. Explain to the management of Braxton how to determine whether a write-off is permitted.Present an argument to support the idea that your company’s land should not be depreciated, even though the property on the land is depreciated? Using practical example describe how International Accounting Standard 40 would apply to Assets in your company? Depreciation does not involve movement of cash, therefore unnecessary in accounting for an entity’s performance, Discuss?
- Why do we need to depreciate our property, plant, and equipment? (Discuss also the treatment of depreciation expense in the financial statements.) Please don't copy paste answers you will provide. Make it original thank you.Depreciation is the reduction in the usable value of fixed assets due to normal wear and tear of time. Depreciation is an indirect non — cash expenditure which is provided on SLM or WDV basis. Rahul is new junior accountant with Hardwork Mills Private Limited he wants to understand normal depreciation differs from additional depreciation. As a tax adviser, guide him on the two concepts and discus the cases where additional depreciation is not allowed.Depreciation continues to be one of the most controversial, difficult, and important problemareas in accounting 1. Explain the conventional accounting concept of depreciation accouting，and discuss its conceptual merit with respect to ( a) the value of the asset, (b) the amount( s) expensed, an ( c) the discretion of management in selectin g the method. 2. Answer the following: a. Explain the factors that should be considered when applying the conventional concept of depreciation to the determination of how the value of a newly acquired computer system should be assigned to expense for financial.
