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Change in Depreciation Method - Change in Accounting Policy?
Accountancy
Hi sir, hope you're well. Like how a change in cost formula is considered change in accounting policy, would a change in depreciation methods also be considered change in account policy? Thanks Video Details ------------- P1 - Accounting Standards - CA Inter AS 5 #8. Illustration - 8
Answers (2)
A change in method of depreciation is dependent on the change in estimate usage pattern. It fulfills the criteria of both change in accounting estimate and accounting policy. For simplicity of application, as per A 10, it is considered as change in accounting estimate.
