The depreciation policy for depreciable leased assets shall be consistent with:

Question

Quizplus · Accepted Answer

The depreciation policy for depreciable leased assets should be consistent with the lessor's normal depreciation policy for similar assets. This is because the lessor owns the asset and will ultimately bear the risk of obsolescence or technological changes, and thus their normal depreciation policy reflects their estimation of the asset's useful life and value. As lessees do not own the asset, their depreciation policy would not be relevant in determining the useful life or value of the asset.

The Depreciation Policy for Depreciable Leased Assets Shall Be Consistent