Asked by
Chase Staples
on Nov 14, 2024
Verified
A change in the estimated residual value of property, plant, and equipment requires a restatement of prior years' depreciation.
Estimated Residual Value
The anticipated value of an asset at the end of its useful life.
Restatement
The revision and republication of one or more of a company's previous financial statements to correct an error.
Depreciation
Allocating the cost of a physical asset across its life of utility in a systematic manner.
- Understand the accounting process for adjustments in depreciation estimates and their effects on financial reports.
Verified Answer
DH
Learning Objectives
- Understand the accounting process for adjustments in depreciation estimates and their effects on financial reports.