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Change in Depreciation Method from WDV to SLM

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Sushant Sonawane

10 Points Posted on 25 June 2020

1. Asset purchase in FY 18-19 in the month of Feb,19. in FY 19-20 change of depreciation from WDV to SLM.

2. How prospective effect will be carried out and what about last year's excess/short depreciation,
if any come into the picture?

provide information in detail.

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Quick Summary

This discussion addresses a change in depreciation method from Written Down Value (WDV) to Straight Line Method (SLM) for an asset purchased in February 2019. It seeks detailed guidance on how to apply the SLM method prospectively from the current financial year (FY 19-20). A key concern is how to handle any excess or short depreciation from the previous financial year (FY 18-19) when making this change.