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Please answer True or False: 1. An accelerated depreciation method is appropriate when the asset's economic...

Please answer True or False:

1. An accelerated depreciation method is appropriate when the asset's economic usefulness is the same each year.

2. IFRS permits the same depreciation methods as U.S. GAAP, with the exception of the units-of-production method, which is not allowed under IFRS.

3. As with U.S. GAAP, IFRS requires that both direct and indirect costs in self-constructed assets be capitalized.

Business   Accounting   
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Answer #1

Answer part one: False

Accelerated depreciation is appropriatewhen an asset initially loses value quickly but then loses less value over time.

answer part two: False

The units of production depreciation method can result in the most accurate matching of actual asset usage to the related amount of depreciation that is recognized in the accounting records. It is accepted by IFRS.

answer part three: False

The direct costs of materials and labor should be capitalized. A portion of indirect costs can be included in capitalized costs. This is the same for both reporting metho

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