Responsibility for selection of the depreciation methods used in financial reporting rests with:

Question

Quizplus · Accepted Answer

Company management is responsible for selecting the depreciation methods used in financial reporting. While the accounting standard body may provide guidance in selecting an appropriate method, it is ultimately the responsibility of management to choose the most appropriate method for their specific situation. The tax authority may require a specific method for tax reporting purposes, but this does not necessarily have to be the same method used for financial reporting. The CPA firm that audits the financial statements is responsible for reviewing the appropriateness of the method chosen, but they do not select the method themselves.

Responsibility for Selection of the Depreciation Methods Used in Financial