Discussion on any relevant accounting standards

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Reference no: EM13144255

You work for an accounting firm that provides accounting services to small businesses. A common complaint by clients is the extra costs associated with you having to perform end of period adjustments. One particular client has come to you asking about why you perform a number of complex calculations to record depreciation. They give you an example of a car they had to replace and paid $20,000 cash for that year. They think this is just an expense of doing business and should be recorded as such.

Outline why depreciation is required – basing your discussion on any relevant accounting standards; and any relevant definitions, concepts and assumptions from the accounting framework.

Reference no: EM13144255

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