Extracts from Published Financial Statements: Change in useful Lives of Property, Plant and Equipment

Under Ind AS 16 Property, Plant & Equipment requires depreciation to be based on the estimated useful life of assets. Also, it is required to estimate the residual value, useful life and depreciation method to be reviewed at least at the end of each financial year. Any changes to these estimates are required to be accounted on a prospective basis.

In this article we take a look at the relevant extracts from published financial statements for change in useful lives of property, plant and equipment by select companies.

Shoppers Stop Limited – Extracts from Annual Financial Statements FY 2020-21

In F.Y. 2019-20, effective 1 Jan 2020, the Company has reviewed the estimated economic useful lives of all components within the broad category of Leasehold improvements as specified in the above table and Electrical Equipment as specified in the above table of its property, plant and equipment, based on the combination of evaluation conducted by an independent consultants and management estimate.

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