CIMA BA3 Syllabus B. RECORDING ACCOUNTING TRANSACTIONS - Different methods of appropriate depreciation - Notes ^{21 / 35}

It is up to the business to decide which method of depreciation to apply to its non-current assets.

The chosen method of depreciation should be applied consistently from year to year.

This is an instance of the fundamental accounting assumption of consistency.

The depreciation method has to be reviewed. If there are any changes in the expected pattern of use of the asset, then the method used should be changed.

In such cases, the remaining net book value is depreciated under the new method, i.e. only current and future periods are affected.

The change is prospective.