Ranjeet kumar sahu (CWA Qualified/CA/CS) (186 Points)
15 September 2009hay can anyone tell me that wat is Changes in accounting estimates
Change in the method of depreciation is regarded as a change in an accounting estimate and hence, the effect is given prospectively.
take it seriously!!!!!!!
Change in accouting estimate- Restatement of an accounting assumption or forecast. Examples include changing the economic (useful) life or salvage value of a fixed asset. A change in accounting estimate is accounted for prospectively over current and future years. This will cause a change to the expense account in future years. Prior years are not restated. Note that a change in estimate coupled with a change in principle is accounted for as a change in estimate. Disclosure should be made of the particulars surrounding the estimate change.
CA. SUDHARSAN K G
(Chartered Accountant)
(472 Points)
Replied 19 September 2009
But you made it as a Joke!!!!!
Anyhow Dear,
Estimates can't be made for 100 %. That is the reason for prospective effeect.
Policies are for Retospective hence you should make it accurately.
CAclubindia
