Similarity

• Purpose: Both allocate the cost of an asset over its useful life.
• Expense Recognition: Both recognize the cost as an expense over multiple periods.

Difference

• CCA: Used for tax deductions.
• Accounting Depreciation: Used for financial reporting.
• CCA: Governed by tax laws (CRA guidelines).
• Accounting Depreciation: Governed by accounting standards (IFRS, GAAP).

• CCA Canada Revenue Agency groups assets together into different classeseach with a different rate of depreciation.
• Accounting Depreciation: Various methods (straight-line, declining balance), chosen based on usage patterns.
• CCA: Applies a half-year rule in the year of acquisition.
• Accounting Depreciation: use when the asset starts for use
• CCA: Affects tax calculations, not directly shown in financial statements.
• Accounting Depreciation: Directly impacts financial statements by reducing asset value and recognizing expense.

Build onto their posts by adding one additional difference between the accounting and tax depreciation/amortization methods not previously mentioned in the original post.