10 X & Co. has been charging depreciation @ 20% p.a. on Straight line
method. It now wants to change the method to diminishing balance
method, the rate of depreciation being 35% p.a. Can the company do so?
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Yes. The method and the rate of depreciation can be changed but the change in method will be treated as a change in accounting policy and the company should disclose the change in its financial statement along with its impact on profit or loss.
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