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AnkushAnkush asked 1 year ago

When subsidiary follows WDV for depre and Parent follow SLM then while preparing CFS there is no need to harmonise accounting policy bcz yeh change in accounting estimate hai as per IND AS 8 ….But apke answer me NOT IN COMPLIANCE Ind As 16/AS-10 likha hai

 

2 Answers
RaviRavi Staff answered 1 year ago

1st of all we simply provide answer given by icai, we give author’s note in many questions with further analysis

RaviRavi Staff answered 1 year ago

as per ind as depreciation method is simply estimate of consumption of fixed asset
its change, is change in accounting estimate and not change in accounting policy
so holding and subsidiary may have different depreciation method, it will be considered as different estimate, and not different accounting policy
so need to harmonise if holding and subsidiary are different depreciation methods
 
now all companies are suppose to follow component based accounting for all parts with significant cost
1 of the subsidiaries is not doing it
so we will have to change its accounting policy and bring in line with holding (harmonise it)
answer given by icai is correct
they are saying to harmonise this thing as is not in line with ind as

answer remain same as per AS also

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