If rate of dep wrong charge on a assets and audit is completed that year how to solve it in subsequent year for proprietary business.
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Quick Summary
This discussion addresses how to correct errors in the rate of depreciation charged on assets for a proprietary business in a subsequent financial year, especially after an audit has been completed. It explores treating the adjustment as a prior period item, considering the materiality of the transaction and its implications on the balance sheet, rather than focusing on Income Tax Return (ITR) filing adjustments.
Prior period item disclosure is one aspect you must slso consider the materiality of the transaction . pls post materiality of the transaction. I mean to say what would be the implications on the balance sheet of the organisation