Depreciation

This query is : Resolved

subramanya.hm (Querist)
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29 August 2009 Dear sir

Can we change the Depreciation method of the company as and when we required? i e. SLM to WDV, or Vice versa. If Not Why.

Thanks

H M SUBRAMHANYA

Ankur Garg

Ankur Garg (Expert)
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29 August 2009 Yes you can change.

Adaptation of different method of depreciation is either required by statue or to comply with accounting standard. It i considered that change would result in more appropriate presentation of financial statement.

What is the requirement?

If you are going to change any accounting policy the disclosure for the same should be given in your financial statement along with the affect of such change (i.e. the amount by whic your asset will appreciate in value by changing the method of depreciation)