Change in Method of Depreciation

Comparison between Indian GAAP and Ind-AS/ IFRS

AS 6 ‘Depreciation Accounting’ requires retrospective re-computation of depreciation and any excess or deficit on such re-computation is required to be adjusted in the period in which such change is effected. Further, such a change in the method of depreciation is treated as a change in accounting policy and accordingly, its effect is quantified and disclosed.

However, under Ind-AS/ IFRS, changes in the method of depreciation are considered as change in accounting estimate and accordingly, applied prospectively.

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