On January 1, 2013, Chicago Furniture purchased a new delivery truck. The truck is expected to be driven a total of 130,000 miles during its useful life of 4 years; however, Chicago Furniture expects that 2014 and 2015 will be the years the truck is most frequently used for deliveries. If Chicago Furniture wants to achieve the best matching of expenses with revenues, which IFRS acceptable deprecation method should it select?

Question

Quizplus · Accepted Answer

Units-of-activity depreciation matches expenses with revenues by allocating the cost of the truck based on its actual usage, which aligns with the expected higher usage in 2014 and 2015.

On January 1, 2013, Chicago Furniture Purchased a New Delivery