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Change in depreciation rate.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Change in depreciation rate.

  • This topic has 2 replies, 2 voices, and was last updated 6 years ago by amna.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • December 18, 2018 at 3:30 am #492155
    amna
    Participant
    • Topics: 92
    • Replies: 93
    • ☆☆

    Hi
    When a company follows a straight line method for depreciation,changes their useful life of the asset classes,how do we calculate depreciation.

    Should the new rate be based on the cost or NBV??

    December 18, 2018 at 8:16 pm #492241
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    Yes, you apply the new rate/remaining life to the carrying value at the date of change.

    Thanks

    December 30, 2018 at 1:21 pm #499493
    amna
    Participant
    • Topics: 92
    • Replies: 93
    • ☆☆

    Thank you 🙂

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • The topic ‘Change in depreciation rate.’ is closed to new replies.

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