Navigate through the principles of the matching concept and the revenue recognition principle, elucidating how they guide the recognition of expenses and revenue in financial statements. Discuss the implications of these principles on the accuracy and transparency of income statements and balance sheets, underlining the crucial role they play in aligning accounting practices with economic reality.

Unpack the concept of depreciation and its critical role in managing a company's assets. Examine the various methods for calculating depreciation, from straight-line to declining balance, and expound on their respective applications and impacts. Showcase, with concrete examples, how depreciation influences the carrying value of assets in a company's financial statements and how it serves as a reflection of asset utilization and wear and tear over time.

Proceed to discuss the accounting equation, "Assets = Liabilities + Equity," as the cornerstone of double-entry accounting. Elaborate on the significance of this equation in maintaining the fundamental balance in financial statements and its role in assessing a company's financial health and stability. Demonstrate how any change in one component of the equation necessitates a corresponding change in another, and how this balance ensures the integrity of financial records.