At the last meeting of the executve cormbittee of Kearins Ltd, the controller was severely caticized by both the president and vice. president of production about the recognition or periodic depreciation. The president was unhappy with the fact that what he referred fo as "s fictitious tern" was deducted. Resulting in depressed profit in his words, "Depreciation is a fiction when the assets being detrimentai to our shareholders because it : forults it the What the controller is doing is unduly understating our profit. This in turn bs said. Our mainterance people tetl me that the the perioclic depreciation charges; however, she presented a different argument. She She further zated that charging depreciation on top of mantenance is such that our plant and equipment will last virtually forever:" ether maintenance or deprecintion but pot both. trecutive conmittee fo deal with the issues ralsed permet the controller to answers instead, you were asked to prepare a report to the Required. Required As the contollers assistant, prepare the