The semi-annual depreciation agreement is half the typical annual depreciation expense in both the first and last years of the asset’s useful life.
The purpose of the semi-annual agreement is to better align expenses with the income generated from the asset in the same reporting period, in accordance with the matching principle.
The semi-annual agreement applies to all forms of depreciation, including straight-line depreciation, double declining balances and the sum of digits for years.
Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.
Accounting policies are the procedures a company uses to prepare financial statements. Unlike accounting principles, which are rules, accounting policies are the standard for following those rules.
Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.