• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Accounting concept

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Accounting concept

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • February 26, 2016 at 10:25 am #302143
    abrizni10
    Member
    • Topics: 55
    • Replies: 49
    • ☆☆

    A company has been depreciating its IT equipment over 5 years, but now finds that it is becoming obsolete in 3 years.

    What does the consistency principle permit the company to do?

    A change the depreciation policy to 3 years and highlight the effect of this in its financial statements

    B change the depreciation policy to 3 years without indicating the effect on profits

    C continue to depreciate over 5 years as per the existing policy

    D continue to depreciate over 5 years but note that after 3 years the equipment will be obsolete

    February 26, 2016 at 3:09 pm #302189
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54705
    • ☆☆☆☆☆

    Please don’t set us test questions to answer – you must have an answer in the same book in which you found the question, and you should ask what problem you have with the answer. Then we will try and help you.

    February 27, 2016 at 1:05 am #302254
    abrizni10
    Member
    • Topics: 55
    • Replies: 49
    • ☆☆

    Yes ur right sir, but it doesn’t explain well, and I find it hard to understand.

    February 27, 2016 at 8:40 am #302290
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54705
    • ☆☆☆☆☆

    The question is not actually a very good one anyway because it is not really the consistency principle (that is that if you are using (for example) straight line depreciation then you should continue to use straight line, to be consistent).
    If decide that the expected life has changed, then they should calculate the depreciation based on the new remaining life (and if material) make a note stating the effect of the change.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • AdityaSairam on Overcapitalisation and Overtrading – ACCA Financial Management (FM)
  • verweijlisa on Financial performance – Example 2 – ACCA Financial Reporting (FR)
  • John Moffat on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)
  • John Moffat on The Statement of Financial Position and Income Statement (part d)
  • Salexy on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in