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Changing Depreciation Method

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  • February 26, 2020 at 6:51 pm
    Changing Depreciation Method 2
    kainfama
    Participant

    We are changing depreciation method at my work place from reducing balance method to straight . changing to straight line method ,most of the assets with net book will have nil net book balances when straight line is adopted.

    my question is, how should we account for the change of method and how should we account for the difference as well?

    February 29, 2020 at 3:26 pm
    Changing Depreciation Method 3
    P2-D2
    Keymaster

    Change in depreciation method is a change in accounting estimate under IAS 8. Based on what you say, all the assets will be written down to nil and the charge goes through profit or loss, there is no retrospective adjustment.

    Thanks

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