- This topic has 2 replies, 2 voices, and was last updated 7 years ago by
.
Viewing 3 posts - 1 through 3 (of 3 total)
- Posts
From example 3 , when using straight line we are charging equal amount annually, but why did you have to change the amount ? Was it because the estimated life was change to 5 years ? Because i see you used 17500 which was the cv of the asset.
Hi,
We’ve changed the depreciation amount as there has been a change in the estimate of the economic life of the asset and the new deprecation charge needs to reflect this.
IAS 8 states that we take the carrying value and apply the new estimated economic life to it in order to calculate the new depreciation charge.
Thanks
Viewing 3 posts - 1 through 3 (of 3 total)
- The topic ‘Changes in estimate (Depreciation)’ is closed to new replies.