It is illegal for a company to use depreciation methods for financial reporting that differ from those used for income tax return purposes.

Question

Quizplus · Accepted Answer

It is not illegal for a company to use different methods of depreciation for financial reporting and income tax purposes. However, they must disclose this in their financial statements and ensure that their tax returns are prepared separately according to the appropriate tax laws and regulations.

It Is Illegal for a Company to Use Depreciation Methods