Is the change in depreciation method i.e. from straight line to reducing balance is change in estimate or change in accounting policy?

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Moataz Ali Sobhi
08-April-2015

Question added by Sadr ul Hoda , Head Of General Accounting , NASSER BIN KHALED AL-THANI AND SONS HOLDING COMPANY W.L.L.
Date Posted: 2014/02/07

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3 Answers

by Rashad Moursi , Financial and Administrative Officer & international Business Transformer, Hotel Owner Reprs. , Investment and financial

as per IAS -8 its a change in accounting estemate .

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by Muhammad Zeeshan , Fuctional Consultant , A.F.Ferguson(PwC)

It is as an acconting estimate as

A change in the measurement basis applied is a change in an accounting policy,and is not a change in an accounting estimate.
no retrospective effect is carried out in case of change in depreciation method.

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by Menerva Melad , Account Executive, Key Accounts , Graphic Home Company

Changes in estimation technique

FRS18 also covers changes in estimation technique. Any changes to estimation technique are not accounted for in the same way as changes in accounting policy. Instead, any changes in estimation technique are accounted for prospectively

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