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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › changes in accounting policy
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
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
Thank you!
You’re welcome