Coupon Accepted Successfully!


Accounting Standard on Depreciation Accounting

The Accounting Standard on Depreciation Accounting (AS-6)  requires that the method selected should be applied consistently from period to period. A change from one method of providing depreciation to another should be made only:

(i) if the adoption of new method is required by statute or for compliance with an accounting standard.

(ii) if it is considered that the change would result in a more appropriate preparation or preparation of the financial statements of the enterprise.   

When such a change in the method of depreciation is made, depreciation should be recalculated in accordance with the new method from the date of the asset coming into use. The deficiency or surplus so arising should be adjusted in the year in which depreciation method is changed to the Profit & Loss Account.

Test Your Skills Now!
Take a Quiz now
Reviewer Name