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changes in accounting policy

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › changes in accounting policy

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • February 25, 2015 at 6:49 pm #230217
    olanrewaju
    Member
    • Topics: 16
    • Replies: 75
    • ☆☆

    hello Mr Mike,
    Can we say that a change in the depreciation method is a chnage in accounting policy? I have always believed that it is a change in accounting estimate

    February 25, 2015 at 8:30 pm #230227
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    The policy is “to charge depreciation on an asset so as to spread the cost over its estimated useful life”

    A change in the way depreciation is calculated is a change in estimate, not a change in policy

    February 26, 2015 at 9:49 am #230289
    olanrewaju
    Member
    • Topics: 16
    • Replies: 75
    • ☆☆

    Thank you!

    February 26, 2015 at 12:45 pm #230331
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    You’re welcome

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    Posts
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