alleryChange in method of depreciation from SLM to WDV is treated under AS as:
AChange in accounting policy
BChange in accounting estimate
CPrior-period item only
DAdjustment to reserves only
Answer & Solution
Correct answer: B. Change in accounting estimate
1. Per AS 10 revised, a change in depreciation method reflects a change in expected pattern of consumption of benefits.
2. This is a change in accounting estimate, applied prospectively.
3. Earlier guidance treated it retrospectively; current practice is prospective.
_Source: ICAI BoS Foundation Paper 1, Ch 5 "Depreciation & Amortisation", §5 change in method_
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