BTN3-3 homework Coursework Example | Topics and Well Written Essays - 250 words

BTN3-3 formulation - Coursework ExampleAs years progress, the value of the equipment go away decline till the accumulated depreciation is combining weight to the cost of purchase if the asset does not have a salvage value. This being the accredited fashion of recording depreciation expenses and accumulated depreciation, I hereby support the method used by Boland. smiths method has its strength, but the weaknesses are severe. It can be noted from the statement that the depreciation was the early one because the accumulated depreciation was equals to depreciation expense. For the first year, the method proposed by Smith is logical since it is wanton to credit the amount directly in the balance sheet with regards to the asset depreciating. The weakness arises when the equipment has depreciated for several years, it will be difficult to have a plot on the accumulated depreciation, and thus, the value of the equipment will be overvalued or undervalued.The situation Boland is facing an ethical one, because the method Smith is suggesting and what she is used to are both relevant to the situation. As an accountant, there are guidelines such as General Accepted Accounting Principles (GAAP) that spells out how such transactions should be recorded. Therefore, if Boland violates those principles, the financial reporting of the firms status will not be accurate. It is unethical to violate those