Why is depreciation or amortization expense not necessarily an accurate measure of the decline in value of long- lived assets?
Answer to relevant QuestionsWhich assets are not amortized? Why?Why might a company want to use a depreciation method that coincides with tax- basis CCA?Why do companies invest in the securities of other enterprises? What conditions may indicate that the value of an investment recorded at cost or amortized cost has been impaired? How is an impairment recorded for an AC investment? Why is impairment not an issue for FVTPL or FVTOCI ...Assume the same facts as in Q11- 16. Net assets that were undervalued at acqui-sition have a remaining estimated life of 10 years ( assume no residual value and straight- line depreciation). There is no goodwill impairment. ...
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