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Can a manager apply a rule of depreciation such as All asset additions are considered to be in use on the first day what month?
Wiki User
∙ 16y ago
No. A typical manager does not determine the accounting treatment of assets. The accounting audit staff will have guidelines on how to properly account for specific types of assets the firm employs. It is these guidelines that the manager should be applying and they should be consistent over asset classes. If the company is public and must comply with Sarbanes-Oxley requirements the accounting auditors must agree with the treatment of asset not just for purposes of reporting to the public through financial statements; but also for use internally so that top mgt is not misled by faulty assumptions underlying the reports they use to make business decisions.
Wiki User
∙ 16y ago
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