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At a recent seminar, a managing director of a well-known company argued that the diminishing balance method of depreciation was the best method to use
At a recent seminar, a managing director of a well-known company argued that the diminishing balance method of depreciation was the best method to use because it had the effect of producing a 'nice, smooth income (profit) flow'. Discuss how this could occur and consider the desirability of reporting smooth profit flows. What role does/should the accountant play in this respect? (6 marks)
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