USA IFRS vs US GAAP

[DPT]

Under US GAAP when a company changes its depreciation from, say, 10 years to 8 years, the depreciation is changed prospectively. Under IFRS, is this how it is done under IFRS?

For example
asset cost $10,000
life 10 years
annual depr $1,000

at start of year 4 when NBV = $7,000 company changed from 10 years to 8 years depr. So new depreciation would be $7000/5 years or $1,400 per year going forward. Would IFRS use the $1,400 or keep going with the $1,000?

I have searched high and low for this and can't find answer.

ty

 

[Fidget]

As with US & UK GAAP, under IFRS (IAS 16 - Property, Plant & Equipment), any increase/decrease would be reflected strictly on a going forward basis. Therefore, using your example, under IFRS the amount to be charged in the current and subsequent periods would be $1400.

 

[Counterofbeans]

I'm not aware of any difference between IFRS and US GAAP when it comes to changing the lives of depreciable fixed assets. As such, the accounting treatment should be the same.