Policy or Estimate

Source: Ind AS 8 (summary)

A change in accounting policy is applied retrospectively, as if the new policy had always been used, unless that is impracticable. A change in accounting estimate is applied prospectively. A change in the depreciation method of an asset is treated as a change in estimate, not as a change in policy.

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About Accounting

Accounting principles in short, plain-language summaries: double entry, accrual, going concern and prudence, then Ind AS topics such as inventories, cash flows, events after the reporting period, income taxes, property, plant and equipment, employee benefits, government grants and foreign currency.

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