A company must utilize the same depreciation methods for financial reporting and taxes purposes?

In my opinion,It is False.A company can not utelizes the same depreaciation method for both financial reporting and for tax purposes.At level of Company,the depreciation charge will be decided by management,And their decision will be base on whether they are preparing the Financial Statements using IFRS/IAS,If so,then IAS16 will be used.If not they, will used the local GAAP inrespect to depreciation issed by country in which they operate .

While  at the level of Taxation,The depreciation will be determine by Tax the authorites using Precribed guildlines and rates isssued by the competent authorities,This is called capital allowance.

In-clusion therefore,the accounting profit will never besame as the taxable profit simple becuase of the difference between depreciation(non allowable expense in the eyes of the tax authorities) charge at the level of the company and the capital allowance allowed for the same asset at the level of the TaxeAuthorities.

False  .  

true

Striaght false because IAS16 require depreciation to be charged as decided by management on the basis asset is utilised in business to generate economic benefit (or on the basis of asssets life after which it will wear off and will not be in usable condition for its intended purpose) whereas tax authorities usually decide on government decisions as where investment is needed to be increased and where not.

In India different depreciation methods & rates are used for IT and for financial reporting. But there are countries there is no such difference.

As you suggest that a company must follow the same depreciation method for both reporting and for tax purpose is some how looks ok but its a false statement because of why, the tax rate decided by the Govt of the Country and whereas the policies regarding a company decided by the management. So the difference of openion may arise if the company follow the same depreciation method. On the other hand which method of depreciation to be followed is also decided by the management like straight forward, reducing balance method, double declining etc, etc.

Its TRUE

False ..financial purpose company will use according to thier policy.

but for taxation company should use the methode wiche is comple by government.