Concepts guide - Depreciation

[Thomas Bushnell BSG]

David Harrison <DavidHarrisonCGA at gmail.com> writes:

> You're right, a summary is necessary.  In the business world, though,
> you are free to choose whatever depreciation scheme you want for your
> financial statements.  However, for tax purposes, the method is set. 

This is not strictly true.  For tax purposes, there are often several
methods one can choose from.  For financial statements, there is even
more flexibility, but it's not unlimited if you want to conform to
generally accepted accounting principles.  Whatever method you choose
for reporting must bear some sane relation to current income under the
matching principle.