If a company wants to change its method of depreciation, then as per Indian GAAP retrospective re-computation of depreciation is made and any excess or deficit arising on such re-computation is required to be adjusted in the period in which such change is effected
Where as in US GAAP the effect of change in method of depreciation is to be given prospectively
In Indian GAAP, direct revenue expenditure during construction period like preliminary expenses, project related expenditure are allowed to be capitalized.
Further, indirect revenue expenditure incidental and related to construction are also permitted to be capitalized.
Other indirect revenue expenditure not related to construction, but incurred during construction period are treated as deferred revenue expenditure and classified as miscellaneous expenditure in b/s and written off over a period of 3 to 5 years.
Where as in US GAAP the concept of preoperative expenses itself doesn’t exist.