9 value O is primarily leased in the industry not purchased

9 value O is primarily leased in the industry, not purchased O makes up a large percent of assets and average useful lives are fairy different TB 13-29 How compettors calculate

Solution

How competitors calculate amortization is most likely to affect the comparision between competitors if the property, plant and equipments \"makes up a large percent of assets and average useful lives are fairly doffent.\"

As the effect of amortisation policy and its amount can be a bit neglected if the amount of these fixed assets is a small percent of assets. But a large percent will always lead to careful and diligent consideration of these assets as compared to other factor. And amortisation is an important factor to affect the value of assets shown in the balance sheet.