Due to the outbreak of the global pandemic during the financial year ended 31 December 2021, Asia Lines flight service operations had been recording huge losses. This had also led to several management executives, including those from the accounting department, being retrenched from their roles. The Accountant, Patrick was closing the accounts for the year ended 31 December 2021 and was in discussion with the Finance Manager, Tim. Tim proposed to extend the useful life of most of the Property, Plant and Equipment (PPE) to reduce the depreciation expenses so that the company records a much higher profit. In this way, the Management would be very pleased and not retrench more staff. In this way, Tim and Patrick can keep their jobs too.

Required: If you are the accountant:

(i) Identify and explain the fundamental principle which is at risk and

(ii) Provide an appropriate safeguard.