Impact of Accounting Standard

[amara]

From what I understand, accounting frameworks like IFRS (IAS 16) and local GAAP require that the depreciation method should reflect the pattern in which the asset’s economic benefits are consumed. This means the decision isn’t just about tax planning—it also needs to align with the asset’s actual usage and company accounting policies.

 

[deepak]

The depreciation method must reflect the actual consumption of economic benefits from the asset in accordance with IFRS (IAS 16) and the majority of local GAAPs. It is more than just a tax optimization tool. Whether using units-of-production, reducing balance, or straight-line, businesses must make sure that their approach accurately reflects usage patterns and conforms to internal accounting policies.

 

[tonny]

According to most local GAAPs and IFRS (IAS 16), the depreciation method must account for the actual consumption of economic benefits from the asset. It is not only a tool for tax optimization. Businesses must ensure that their method appropriately reflects usage patterns and complies with internal accounting policies, whether they choose to use units-of-production, reducing balance, or straight-line.

 

[jasminsain]

Accounting standards are the set of rules and guidelines that define how financial transactions are recorded, reported, and presented in financial statements. The standards have a broad impact on businesses, investors, financial markets, and the overall economy by promoting consistency, transparency, and accountability in financial reporting.

 

[Samuel]

Accounting standards refer to the rules and guidelines according to which the transactions connected with finance are registered, disclosed, and conveyed by the financial statements. The standards help in generalizing the effects on businesses, investors, financial markets and the entire economy by ensuring consistency, transparency and accountability in the financial reporting.