Explain clearly how depreciation may be rationalized from an ‘Income and Expense’ view of conceptual primacy. b) Explain clearly how depreciation may be rationalized from an ‘Asset and Liability’ view of conceptual primacy.

) Explain clearly how depreciation may be rationalized from an ‘Income and
Expense’ view of conceptual primacy.
b) Explain clearly how depreciation may be rationalized from an ‘Asset and
Liability’ view of conceptual primacy.
c) Which of the two views explained above does the current international
accounting / financial reporting standard dealing with depreciation adopt,
and why?
d) How useful is the ‘Qualitative Characteristics’ chapter of the IASB’s
Conceptual Framework in helping you to assess which of the two
rationalizations of depreciation (as dealt with in parts a) and b)) makes
more sense?