This financial accounting report delves into critical concepts such as the determination of an asset's useful life and the meaning of its residual value, providing a foundational understanding of asset valuation. It explores the definition of fair value and its implications under AASB 116 and AASB 112, highlighting the standards' impact on financial reporting. Furthermore, the report examines ethical representation in the context of a CEO's argument, considering the guidelines of AASB 101, and discusses the importance of adhering to accounting standards for accurate and transparent financial statements. The analysis includes real-world examples and concludes with recommendations for best practices in financial accounting, emphasizing the need for consistent depreciation methods and ethical considerations. This report is available on Desklib, a platform offering AI-based study tools.