Aligning Depreciation with Corporate Tax & Accounting Practice

The new depreciation decision bridges a long-standing gap between fair-value accounting under IFRS and the cost-based approach used for Corporate Tax, creating a more balanced framework.

Points of Alignment:

• Creates parity between cost-basis and fair-value taxpayers.

• Requires coordination between accounting teams and tax advisors.

• Tax depreciation capped at 4% of original cost or tax WDV—whichever is lower.

• Election is permanent, so long-term strategy should guide the choice.

Conclusion

The new depreciation rules align tax and accounting—but make your election carefully, it’s a one-time choice.

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