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Question

  Which among the following is not the condition for change in the method of depreciation?

A The adoption of the new method is required by statute; Correct Answer Incorrect Answer
B For compliance with an accounting standard; Correct Answer Incorrect Answer
C For compliance with the provisions of the Companies Act 2013 Correct Answer Incorrect Answer
D If it is considered that change would result in a more appropriate preparation of financial statement; Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

The depreciation method selected should be applied consistently from period to period. The change in method of depreciation should be made only if; o   The adoption of the new method is required by statute; or o   For compliance with an accounting standard; or o   If it is considered that change would result in a more appropriate preparation of financial statement.

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