07 July 2009
I want to change method of depreciation in company , what is the requirement , if financial statement will not looks good (decrese in profit) after changing of method , shall i change method ?? , please advise me.
11 July 2009
yes you can change the method of depreciation, but since begining, you have to calculate the depreciation as per new method and the effect of the same shall be shown in notes to the accounts. e.g. if you are charging WDV and want to switchover to SLM, than first calaculate the dep as per SLM since begining and write back the excess dep already charges as adjustment. u have to also quantify the amount by which profit is being inflated in notes to the accounts.
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