Question

FASB CODIFICATION RESEARCH- provide references
CE11.3  

Your great-uncle, who is a CPA, is impressed that you are majoring in accounting. However, he believes that depreciation is something that companies do based on past practice, not on the basis of any authoritative guidance. Provide the authoritative literature to support the practice of fixed-asset depreciation.

CE11.4  

What is the nature of SEC guidance concerning property, plant, and equipment disclosures?

Answer 1

CE11.3

In terribly short for grand father the IAS sixteen is that the best authoritative literature for depreciation . With the passing of your time, continuous use of associate quality,the value of assets decreases, and once such period of time repairing doesn't work conjointly for erection of that fastened quality. So, to face such cloudy days bourgeois makes provision from the primary day of the employment of associate quality ,called depreciation . IAS sixteen offer completely different strategies of depreciation and categories of fastened assets . really it's concern with accounting of fastened assets ,Associated depreciation, determination of carrying charge of fastened assets etc. It is strictly a thought that depreciation calculation relies on past follow. At the time of scheming depreciation not solely getting value is taken into account, in reducing balance technique, on the premise of shift balance of associate quality ,depreciation is charged . which can offer realistic results . Most importantly IAS sixteen permits company to charge depreciation in any strategies, that sufficiently disclose nearly correct estimation .If company or organization thought that new technique of depreciation will depict the current price of fastened assets in most correct manner, then they'll alter the strategy of depreciation.For that it should be written on the footnotes beneath financial plan. it's realistic and not in the slightest degree typical. With the growing trends of manufacture, differing types of depreciation strategies ar return to associate existence ,which aren't regarding solely past, rather they're the result of authoritative steering of IAS sixteen, these ar a hundred and fiftieth,200% double declining depreciation technique, changed accelerated value recovery system etc.

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