Q1(c).

A tutorial question and its suggested solution were:

Q. Discuss depreciation in the context of the various accounting concepts.

Solution: The matching principle and the accounting period assumption require the recognition of depreciation as the consumption of the economic benefit received from the assets historical cost during the period. The balance of unconsumed economic benefits is maintained on the statement of financial position as the fixed assets carrying or net book value.

Required:

Explain the answer to the tutorial question in your own words.