The assignment discusses depreciation as a measure of expense being apportioned over a period based on accounting estimates and assumptions. The case study involves Peter changing the method of accounting from straight line to sum of years digits, which shifted the major portion of the depreciation cost to the first 2-3 years. This change in method is an example of window dressing, which manipulates profits by shifting them from present to future accounting periods. The assignment also highlights the importance of following IAS 16/AASB 116 standards regarding depreciation and its disclosure requirements.