Schedule ii-depreciation either retrospective or prospective

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Rohit k Somani (Querist)
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03 June 2015 Complying with depreciation as per Schedule-II is either change in accounting policy or change in accounting estimates.
Bcoz if it is change in acc policy then it will have RETROSPECTIVE effect otherwise in later case it will have PROSPECTIVE Effect means we dont hv to calculate difference between actual dep. charged and to be charged as per new sch. II.

Pls give opinion for assisting me.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 June 2015 It is a change in accounting policy, effect has to be quantified though the change is by virtue of law.

Rohit k Somani

Rohit k Somani (Querist)
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03 June 2015 Means i need to calculate diffrence between the dep as per co's old policy and dep to be charged upto date as per sch.II.
Should i adjust such difference from general reserve balance or from current year p&l account.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 June 2015 Yes arrive the difference, mention that and its effect in the profit , assets and reserves & surplus of the company may be disclosed by way of a note in the 'notes to accounts'. No need to adjust the difference in the books of accounts of the company.