A company has been charging depreciation @ 10% p.a. on original cost method. It now wants to change the method from original cost to diminishing balance method. The rate of depreciation being 15% p.a. Can it do so?

A company has been charging depreciation @ 10% p.a. on original cost m

1.	A company has been charging depreciation @ 10% p.a. on original cost method. It now wants to change the method from original cost to diminishing balance method. The rate of depreciation being 15% p.a. Can it do so?
Answer» Solution :Yes. The method and the RATE of depreciation can be CHANGED but the CHANGE in method will be TREATED as a change in accounting policy and the company should disclose the change in its FINANCIAL statement along with its impact on profit or loss.

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A company has been charging depreciation @ 10% p.a. on original cost method. It now wants to change the method from original cost to diminishing balance method. The rate of depreciation being 15% p.a. Can it do so?

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