Disclosure of change in rate of depreciation

AS 2542 views 1 replies

A company dealing in software development has changed the rate of depreciation on software developed by it over the years from WDV @ 40% to the useful life expectancy(in this case 15 yrs) of the developed software .How will this change in rate be disclosed in the financial statements and what all disclosure are required so as to give fair treatment in the books of accounts.

Please provide a sample of "Disclosure in notes to account to Balance sheet" for the same.

Kindly guide on this issue.

 

Thanks

Replies (1)

in notes on accounts give the fact and effect of depriciation

write the new rate,and write how the change of depriciation effects profits i.e whether for change of depn profit is increasing or decreasing and by how much


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