how do u explain depreciation adjustment, deferred
depreciation expense, deferred depreciation reserve
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Depreciation adjustments arise due to reclasifying the
asset or revaluing the asset as of previous period or
changing the depreciation rates.
This is quantum of depreciation amount had to be expensed
or amortized over a period of time.
For Example if we are reclassifying the asset, it will be
depreciated as per new classifcation, the extra dep which
arise due to change in classification can be expensed in
the current period or written of over a period of tme.
From the above extra depreciation is the DEPRECIATION
ADJUSTMENT.
The extra depreciation amount kept aside for amortization
is called DEPRECIATION RESERVE.
Difference in Depreciation between corporate and Tax is
Stored in Depreciation Reserve.
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