Unformatted text preview: asset to determine if it is reasonable. 3. From and ethical point Gillespie needs to be careful because by extending the life of the specialty machinery he needs to keep the life remaining within reasonable depreciation. By doubling the useful life from 5 years to 10 years Gillespie might be stretching the useful life to much. If Print Technologies is a large company then the auditor might also question the decision of doubling the life of the equipment. Also they need to keep in mind that technology is always changing and the value of equipment may go down substantially if there is a new more efficient product that comes out. This would then be recorded as impairment loss....
View Full Document
- Spring '10
- Accounting, Generally Accepted Accounting Principles, useful life, Gillespie