Can anyone explain me What is the Retrospective Effect?
Give example also if possible...
thnks in advance
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What is the Retrospective Effect?
Replies (7)
RETROSPECTIVE EFFECT MEANS TAKING EFFECT FROM THE DATE IN THE PAST.
EG:
IF YOUR SALARY IS BEING INCREASED BY Rs.5000 P.M. WITH RETROSPECTIVE EFFECT, IT WOULD HAVE EFFECT FROM THE DAY U HAD JOINED UR JOB.
Agree With Reena
thnk u so much Reena.......it was a gr8 help from ur side
Retrospective effect means that taking effect of any change from from past date.
Take an example : Suppose We charge Depreciation on SLM and we are in such practice from 2 years.
Now we change to WDV method.If the change is to be retrospective, then the entire depreciation charged during past 2 years will be adjusted according to WDV by adjusting the same in current year.
But if a person is getting 10000 pm and his salary increased with retrospective effect means now he will get 15000 pm then what about the balance of RS 5000 pm from the date of joining his job as per your explanation he will get the balance of past service now or not?
I have a question that if the person is earning about 20000rs pm and after retrospective effect his salary increased to 25000rs pm and he worked for 10 months so the company will pay him 50000rs ?
CAclubindia
