Many practitioners and clients prefer to use tax depreciation methods for U.S. generally accepted accounting principles (U.S. GAAP) financial reporting for simplicity. Maintaining consistency between tax reporting and financial reporting enhances recordkeeping efficiency and reduces uncertainties about the implications of basis differences when an asset is disposed of or sold. However, tax depreciation methods may not always be appropriate, and consideration of applicable financial reporting standards should not be overlooked. In this report, we review the financial reporting standards for
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Using Tax Depreciation Methods in U.S. GAAP Financial Statements
5 hours ago · 1 min read
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Download the CPEA Report - January 2026 - Using Tax Depreciation Methods in US GAAP Financial Statements
File name: CPEA Report - January 2026 - Using Tax Depreciation Methods in US GAAP Financial Statements.pdf
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