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AS-5 is changing of method of depreciation from SLM to WDV is change in estimate or change in policy

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Anamol Agrawal

29 Points Posted on 21 December 2022

yesterday I was studying and got to much confused that it seems like change of policy but educator is saying it is the change in policy
how it is a change in policy?

Replies (3)

Quick Summary

This discussion explores whether changing the depreciation method from Straight-Line Method (SLM) to Written Down Value (WDV) constitutes a change in accounting estimate or a change in accounting policy under AS-5. While some find it confusing, the consensus leans towards it being a change in accounting estimate, not a policy change, unless specific circumstances dictate otherwise.

Yasaswi Gomes new

Finance

4592 Points Posted on 21 December 2022

Why are you surprised. This gaap accounting is a headache for non ca's. There is nothing we can do apart from following the priciples. I deal with as, indas amd ifrs and I dont feel too good cause i dont byheart and my gist must be 100% accurate. If i take cpa reporting exam, if probably thebclass topper. Policy is a policy and disclosures. Fyi slm is genrally the accepted method. But there is one thingvcalled MODIFIED ACCELRATED DEPRECIATION or something like that which changes the policy and its purely tax planning.