Sure, but to take depreciation as an example, the rules do not necessarily match reality. Sometimes an asset's practical life is longer than the rules allow, so

Sure, but to take depreciation as an example, the rules do not necessarily match reality. Sometimes an asset's practical life is longer than the rules allow, sometimes it is less. These factors do not just depend on the asset, itself, they depend on how the asset is used. If a company goes under, the resale value of the asset may be worth more or less than its carrying value depending on outside economic conditions, technology changes, or what have you. Even the most earnest accountant can get things very wrong.