GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The method of depreciation is applied consistently to provide comparability of the results of the operations of the enterprise from period to period. A change from one method of providing depreciation
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If it is considered that the change would result in a more appropriate preparation or presentation of the financial statements of the enterprise
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If the adoption of the new method is required by statute
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For compliance with an accounting standard
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All of the above
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Explanation:
Detailed explanation-1: -Without retrospective effect means no adjustment will be made for past entries and only in the future depreciation shall be charged by the new method. While with retrospective effect implies that the amount of depreciation to be charged is adjusted from the date of purchase of the asset.
Detailed explanation-2: -Under straight line method of depreciation, the amount of depreciation remains constant because depreciation is provided at a fixed rate on the purchase price of the asset.
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