Identifying Violations of Accounting Assumptions and Principles Identify the accounting assumption or principle that is violated in each situation a through d. a. Although the economic deterioration is expected to follow straight-line, for efficiency purposes, a company adopts an acceleratec b. A debt obligation of a fully owned subsidiary is excluded from the consolidated financial statements of the parent company. c. Because land has appreciated by over 500% since its original purchase, management thought that it would be more appropriate d. A company did not report in a note to its financial statements information regarding litigation claims that were probable and esti poses, a company adopts an accelerated tax method of depreciation for financial reporting purposes. statements of the parent company. ught that it would be more appropriate to report land at fair value. ation claims that were probable and estimable because the company did not want any information published that could impact their legal defense