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?
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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
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