02-09-2010, 09:26 PM
hi everyone
i have a query regarding change in accounting estimate,it requires prospective treatment i.e change is applied on current year or if it affects future amounts then in future as well while retospective treatment (change in accounting policy or correction of errors} is applied in previous years accounts which are available etc THEN WHY CHANGE IN DEPRECIATION % OR USEFUL LIFE requires cumulative adjustments,we should adjust carrying value only for remaining useful life why we adjust previous year accounts
i have a query regarding change in accounting estimate,it requires prospective treatment i.e change is applied on current year or if it affects future amounts then in future as well while retospective treatment (change in accounting policy or correction of errors} is applied in previous years accounts which are available etc THEN WHY CHANGE IN DEPRECIATION % OR USEFUL LIFE requires cumulative adjustments,we should adjust carrying value only for remaining useful life why we adjust previous year accounts
