A Pvt co used to charge depreciation under wdv method using income tax rates, now it wants to charge depreciation using rates provided under the companies act. Does it constitute a change in accounting policy? How will the difference arising from retrospective calculation be treated under the revised sch-VI? What additional disclosures are required fro the same..
Regards,
dear souvik,
its not achange in accounting policy its rather a change in accounting estimate... accounting policy will said to be changed if you chenge the method of charging depreciation..
retrospective amendment is not requierd in such cases... all you need is to disclcose the old rates and the new rate of depreciatin...
cheers
ganesh agarwala
Chirag N Shah & Associates
Mumbai
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