Asked by
Kyler Wilhelm
on Dec 16, 2024
Verified
Mandeep Ltd.has decided to change the estimate of the useful life of an asset that has been in service for two years.Which of the following statements describes the proper way to revise a useful life estimate?
A) Revisions in useful life are permitted if approved by Canada Revenue Agency.
B) Both the current and future years will be affected by the revision.
C) Retroactive changes must be made to correct previously recorded depreciation.
D) Only future years will be affected by the revision.
Retroactive Changes
Adjustments made to records, policies, or financial statements that apply to previous periods.
- Understand how changes in depreciation methods or estimates affect financial statements.
Verified Answer
DL
Learning Objectives
- Understand how changes in depreciation methods or estimates affect financial statements.