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ACC 541 ? Explain the conventional accounting concept of depreciation accounting

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A. Explain the conventional accounting concept of depreciation accounting.;Depreciation is described as a process of systematic and rational cost allocation. The depreciation process is depreciation base, useful service life, and depreciation methods. Depreciation accounting is a system of accounting that aims the distributed cost value to the less salvage value, other basic value of tangible capital assets, over the estimated useful life of a unit. It?s process of allocation and not valuation;B. Discuss its conceptual merit with respect to;i. the value of the asset ? The depreciation base is the value of the asset that should be distributed over the expected useful life, the concept of depreciation is extremely important in financial accounting because it facilitates in upholding its basic assumptions, accruals and fair presentation;ii. the charge(s) to expense- Depreciation is listed as an expense and will state the amount depreciate, which is used with P&L. This will occur over

 

Paper#20740 | Written in 18-Jul-2015

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