Depreciation

Financial Reporting

For assests based IND AS, when there is a change in accounting estimate at end like remaining period, or revalued amount or anything that will result in new depreciation amount we will consider such effect from next year depreciation right? But in other standards when depreciation comes like in 20 PPE when carrying amount changed due to refund eg end of 24-25, change depreciation estimate was taken by icai like from that year itself So there like an approach or standard assumption to this or can we follow ?

Harshitha Kalidindi

CA Final

★ 51K+

29-Apr-26 07:49

133

Answers (1)

Generally we compute depreciation as per old estimate till the date of change. In questions based on production units - we will consider change from the year in which the change happened. Also ICAI is not consistent with approach in questions

CA Suraj Lakhotia

Admin

01-May-26 21:03