Change in Rate of depreciation

This query is : Resolved

CA Saurabh Redasani (Querist)
Follow

26 January 2011 Depreciation for the last two years was calculated at 45% which should have been calculated at 45.08% by a PSU co. and during the current year this mistake is noticed.
What is treatment for the above?
Whether it is change in accounting estimate/policy?
Whether retrospective/prospective effect is to be given?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

26 January 2011 1)Depreciation has to be recalculated in accordance with the new method from the date of the asset coming into use.
2)It is a change in the accounting policy.
3) The deficiency arising from retrospective computation has to be adjusted in the accounts for the year in which the change is made.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

THUSHAR MURALI KRISHNA

rana andcompany

Vinod Patil

CA jignesh daiya

Pritanu Chakraborty

Subscribe Now

Change in Rate of depreciation

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

Article Assistant

GST CONSULTANT

GST CONSULTANCY

Manager- Finance and Compliance

CA Final