Hi,
Our company is accounting depreciation in WDV method for the past 2 years. Now, our Management is suggesting to account depreciation in Straight Line Method. What is procedures for changing the depreciation method?
Change in method is treated as change in accounting estimate and it is accpunted as per AS 5 which states that:
The nature and amount of a change in an accounting estimate which has a material effect in the current period, or which is expected to have a material effect in subsequent periods, should be disclosed. If it is
impracticable to quantify the amount, this fact should be disclosed.
CAclubindia
