Accounting Standard- A set of concepts, standards, and procedures that constitute the foundation of financial accounting policies and practices are known as accounting standards. Depreciation - Depreciation is an accounting method for allocating the cost of a tangible or physical asset over its usable life or expected life. In simple terms, it can be referred to as a reduction in the value of tangible fixed assets over time due to its wear and tear. As per accounting standard 6 on depreciation accounting, there is various method of calculating depreciation such as straight-line method, written down value method, unit production method, etc. As per IAS 8 on Accounting Policies, Changes in Accounting Estimates and Errors, a company is allowed to change its accounting policy:Only if the change is mandated by a standard or interpretation. when the adoption is mandated by law. financial statement results in more accurate and timely information on the effects of transactions, other events, or conditions on the entity's financial position, financial performance, or cash flows.