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Joined March 2019
Accounting principles are simple. They are developed to measure everything accurately. And there is no measurement of cost beyond that. What ever way is convinient, people follow relevant principles. Example, depreciation. SLM method is slower than diminishing balance method. Yet companies choose that because their tax planning is not in hurry to claim all depreciation immediately. Similarly, if you include your salry, you will get a tax benefit through amortisation. There is no intagible value of an asset, ACCOUNTANTS ASSIGN A VALUE TO THEM.