1.

Niranjan & Co has been charging depreciation 20% per annum on Straight Line Method. It now wants to change the method to diminishing balance method, the rate of depreciation being 35% per annum. Can the company do so? Or As per consistency concept, a company cannot change an accounting policy. Does this hold true in all instances? Explain.

Answer»

Niranjan & Co has been charging depreciation 20% per annum on Straight Line Method. It now wants to change the method to diminishing balance method, the rate of depreciation being 35% per annum. Can the company do so?

Or
As per consistency concept, a company cannot change an accounting policy. Does this hold true in all instances? Explain.



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