Change in Rate of depreciation

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CA Saurabh Redasani (Querist)
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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)
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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.

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