Would the selection of straight-line over an accelerated method be neutral? Would it be ethical?
The final impact of both straight line and accelerated method would be same and equal however the accelerated method have depreciation in the initial period as compared to Straight line method which will be less in last year's. Hence,I done method is followed for entire life period of asset then Straight line method will be a neutral for accelerated method.
It won't be ethical if we shift from accelerated method to straight line method in the middle of the life of the asset as accelerated method have high depreciation in initial period and low depreciation in the end as compared to straight line method and shift in middle will result in showing low profits in the end. However,It will be ethical if we follow it from it beginning of the life of assets.
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