Why is depreciation said to cause an allocation problem in, Finance Basics

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Why is depreciation said to cause an allocation problem in

1. Why does the net book value of a non-current (fixed) asset not always equal the proceeds of sale?

2. Why is depreciation said to cause an allocation problem in accounting?

3. How should the cost of a non-current (fixed) asset be decided?

4. What are the matters of judgement relating to non-current (fixed) assets which users of financial statements should think about carefully when evaluating financial statements?

5. What is meant by impairment?

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Finance Basics: Why is depreciation said to cause an allocation problem in

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