A service oriented company, Bharadwaj Inc, included in his annual balance sheet and profit and loss accounts presented to its shareholder at its AGM, the following note on its policy of accounting.
Fixed assets are stated in the consolidated balance sheet at cost minus accumulated depreciation and amortization. Depreciation is provided on all fixed assets, except land. This is done to reflect the true value of the assets. The writing of their cost is done by using the Straight line Method of depreciation over the estimated economically useful lives of the respective assets.
The cost of leasehold improvement, if any, is amortized over the term of remaining numbers of years of the lease in equal annual installments.
Which of the following statement is relevant to , but not consist with, the above accounting policy?
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