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Changes in estimate (Depreciation)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Changes in estimate (Depreciation)

  • This topic has 2 replies, 2 voices, and was last updated 6 years ago by iyamu.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • October 2, 2018 at 5:28 pm #476151
    iyamu
    Participant
    • Topics: 286
    • Replies: 171
    • ☆☆☆

    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.

    October 3, 2018 at 5:59 pm #476281
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7177
    • ☆☆☆☆☆

    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

    October 5, 2018 at 3:54 am #476507
    iyamu
    Participant
    • Topics: 286
    • Replies: 171
    • ☆☆☆

    Ok thanks

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    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • The topic ‘Changes in estimate (Depreciation)’ is closed to new replies.

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