Changing Depreciation Methods PDF

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Added on 2021-06-18

Changing Depreciation Methods PDF

Added on 2021-06-18

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COURSEPROFESSORCITY DATE CHANGING DEPRECIATION METHODS

IntroductionIAS 16 and AASB 116 usually handles plant, property as well as equipment revaluation,It also enhance recognition and give some guiding standards that should be followed by an entity while making some disclosures linked with the assets. In this scenario, some of Marion’s actions were in line with the AIS 16/AASB 116 whilst others were contrary (Del Giudice, Manganelli & De Paola 2016).

Whether Marion’s Actions were in line with IAS 16/AASB 116 Requirements?To start with, Marion’s actions were in line with paragraphs 29 to 66 of the AIS 16/AASB 116 which are said to deal with measurements after asset recognition. Such is action is evident in Marion case where Marion decided to make some variations to the depreciation technique used by this firm. This was the case since Marion ensured that the depreciation technique is adjusted.Besides, Marion is said to have complied with IAS 16 requirements as she changed depreciation technique which was being utilized in reflecting the patterns of future expected benefits within the entity. Similar section calls the entity to make some reviews of residual values of a particular asset, after revaluation every year (Stunguriene & Christauskas 2014).

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Assignment on Depreciation Policy

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Changing Depreciation Methods PDF