In the audit of the Property, Plant and Equipment account of Bim Co., you have noticed that the depreciation methods used in years 1-3 (double Declining) of operations have been different with what the company has been using from 4th to 6th (150% declining balance) year. On the 7th year, the year of audit, the company has agreed to use the straight-line depreciation method for the current and following years. There was no other acquisition or disposition of PPE during the years. As an auditor, you would most likely recommend that * A. The company use a current and prospective approach in accounting for its depreciation using the double-declining balance method, the original depreciation method used. B. The company use a current and prospective approach in accounting for its depreciation using the straight-line method of depreciation. C. The company adjust its retained earnings retrospectively to adhere to the adjusted computation of accumulated depreciation using the straight-line method without corresponding adjustment to the salvage value D. The company adjust its retained earnings retrospectively to adhere to the adjusted computation of accumulated depreciation using the straight-line method with corresponding adjustment to the salvage value
In the audit of the Property, Plant and Equipment account of Bim Co., you have noticed that the
A. The company use a current and prospective approach in accounting for its depreciation using the double-declining balance method, the original depreciation method used.
B. The company use a current and prospective approach in accounting for its depreciation using the straight-line method of depreciation.
C. The company adjust its
D. The company adjust its retained earnings retrospectively to adhere to the adjusted computation of accumulated depreciation using the straight-line method with corresponding adjustment to the salvage value
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