&gt;<i>For example - how long do you depreciate (write down the value of) an asset that you buy? If you depreciate it too slowly, it might make it seem like you&#x27;re more profitable than you really are.</i><p>It isn&#x27;t supposed to be ambiguous, though it sometimes is (and that&#x27;s a problem).  At least in Canada, we have relatively straight-forward rules to follow for allowable capital depreciation rates, as seen here:<p><a href="http:&#x2F;&#x2F;www.cra-arc.gc.ca&#x2F;tx&#x2F;bsnss&#x2F;tpcs&#x2F;slprtnr&#x2F;rprtng&#x2F;cptl&#x2F;clsss-eng.html" rel="nofollow">http:&#x2F;&#x2F;www.cra-arc.gc.ca&#x2F;tx&#x2F;bsnss&#x2F;tpcs&#x2F;slprtnr&#x2F;rprtng&#x2F;cptl&#x2F;c...</a>