Answer:

Half-year convention meaning

This is a principal of United States Tax Law. Certain type of property has depreciation . Depreciation is reduction in the value of an certain  asset over the particular  time, due to wear  or  tear effect which  allows one to deduct a certain amount from the  value of property . Half-year convention is depreciation schedule that  allows depreciation on  property which are  acquired exactly in the middle of the year. According to this principal only half of the full-year depreciation is allowed the year of acquisition and reaming depreciation will be deducted as per the schedule in remaining year.

This principal of Half-year convention used in both , straight-line depreciation schedules and also for modified accelerated cost recovery systems

Why is the half-year convention considered acceptable in financial accounting?

half-year convention considered acceptable in financial accounting because certain assets which are acquired in the middle of the year and on those assets it is wrong to deduct the full  year depriciation . Half year convention will give true and fair value of the assets as well as it allows to deduct true value of depreciation for the period of its use.