Accounting · Accounting Standard 5
A firm decides to switch its depreciation method from the Written Down Value (WDV) Method to the Straight Line Method (SLM). Under Indian GAAP (AS 5), this change is treated as:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A change in accounting estimate, with only current and future years' depreciation adjusted.✓
- 2A change in accounting policy that must be applied retrospectively.
- 3A fundamental error requiring the revision of prior years' financial statements.
- 4A change in accounting policy that must be applied prospectively.
Correct answer
A change in accounting estimate, with only current and future years' depreciation adjusted.
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