Change in depreciation rate.

This topic has 2 replies, 2 voices, and was last updated 7 years ago by amna.

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December 18, 2018 at 3:30 am #492155
amna
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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
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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
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Thank you 🙂
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