Hi,
Our company is accounting depreciation in WDV method for the past 2 years. Now, our Management is suggesting to account depreciation in Straight Line Method. What is procedures for changing the depreciation method?
Menu
Depreciation Method Change
Replies (3)
Change in method is treated as change in accounting estimate and it is accpunted as per AS 5 which states that:
The nature and amount of a change in an accounting estimate which has a material effect in the current period, or which is expected to have a material effect in subsequent periods, should be disclosed. If it is
impracticable to quantify the amount, this fact should be disclosed.
The nature and amount of a change in an accounting estimate which has a material effect in the current period, or which is expected to have a material effect in subsequent periods, should be disclosed. If it is
impracticable to quantify the amount, this fact should be disclosed.
thanks for tour kind guidance
good clarification and information
Recent Topic
- Proprietor have 2 business. One is registered unde
- ITR-4 – Gross Receipts or Turnover for Secti
- Unrelated entries in AIS and Form 26as
- Payment to foreign national
- Internal reconstuction
- IDS Refund – Annexure B & GSTR-3B Match,
- Can i should STCG and LTCG as business income ?
- Capital contribution in Firm
- Form 3CD – Clause 20(b) | ESI Contribution &
- Capital Gains on Dissolution of Partnership
Related Topics
CAclubindia
