I want to know whether if there is chance in depreciation for a private ltd co to whom caro is applicable from WDV TO SLM, audit report should be qualified?
2 Replies
valji
(Accounts manager-MBA)
(2150 Points)
Replied 02 September 2011
yes audit report qualified method of change in Depreciation as per AS 1
Akhil Sharma
(Service)
(141 Points)
Replied 02 September 2011
The change in method of depreciation does not require the auditors' report to be qualified. However, as per AS1 any change in the accounting policies which has material effect should be disclosed. I am reproducing relevant para 26 of AS1 below for ready reference.
"26. Any change in the accounting policies which has a material effect
in the current period or which is reasonably expected to have a material
effect in later periods should be disclosed. In the case of a change in
accounting policies which has a material effect in the current period,
the amount by which any item in the financial statements is affected by
such change should also be disclosed to the extent ascertainable. Where
such amount is not ascertainable, wholly or in part, the fact should be
indicated."
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