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Change in accounting policies and estimates

Accountancy

Why we are giving prospective effect in case of change in accounting policy and retrospective effect for change in estimates

Shruthi Nachammai

CA Inter

★ 4K+

20-Feb-24 10:01

115

Answers (4)

Depreciation is accounting estimate & Change in depreciation is prospective

Sushmita Chowdhury

CA Inter

★ 715

20-Feb-24 13:34

But why ??

Thread Starter

Shruthi Nachammai

CA Inter

★ 4K+

20-Feb-24 16:26

estimates are given prospective effect. When we estimate we do not have all information. Estimated keep changing. If we keep doing retrospective adjustment, it will be complex nd difficult .

CA Suraj Lakhotia

Admin

20-Feb-24 18:52

Tku sir

Thread Starter

Shruthi Nachammai

CA Inter

★ 4K+

21-Feb-24 09:22

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