Writing Assignment (One depreciation method, please!)
The FASB frequently receives recommendations about areas it should consider for study. Depreciation accounting has not been ad Dr. essed as a separate topic by the FASB, and several alternative methods are used for recording this expense on the books. Assume that a group of financial analysts recommends to the FASB that a study be made of depreciation accounting with the objective of selecting one method as the only acceptable one. The analysts reason that only then will comparability in financial statements be achieved. You have recently been hired as a member of the FASB’s research staff. Write a summary memo presenting the arguments for and against the FASB following the recommendation by the analysts.