valuation of asset
This query is : Resolved
22 May 2009
when I go to check initial engagements as per AAS-22.In previous year the depreciation policy was changed by the organisation from companies act to income tax act. It does not take with retrospective effect. It directly applied income tax rates on WDV values.However they are mentioned in the notes to accounts as "during financial year now on wards rates of depreciation is taken as per IT act?But I have doubt as per Accouting standards when changing the depreciation rate(changing accouting policy)it will take with retrospective effect.Plz clarify me?
CA.BHARAT BHUSHAN
(Expert)
22 May 2009
As per AS-6 Depreciation Accounting Para 21,if depreciation method is changed, depreciation should be recalculated in accordance with the new method from the date of asset coming into use.
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