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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

Shruthi Nachammai

CA Inter

4K+

20-Feb-24 10:01

83

Answers (4)

Depreciation is accounting estimate & Change in depreciation is prospective


Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

710

20-Feb-24 13:34

But why ??


Thread Starter

Shruthi Nachammai

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

CA Suraj Lakhotia

Admin

20-Feb-24 18:52

Tku sir


Thread Starter

Shruthi Nachammai

Shruthi Nachammai

CA Inter

4K+

21-Feb-24 09:22

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