Which of the following disclosures is required for a change from sum-of-the-years-digits to straight-line?
A)The cumulative effect on prior years, net of tax, in the current retained earnings statement
B)Restatement of prior years' income statements
C)Recalculation of current and future years' depreciation
D)All of these answer choices are required.

Question

Quizplus · Accepted Answer

A change in depreciation method is treated as a change in accounting estimate, and the cumulative effect on prior years, net of tax, should be disclosed in the current retained earnings statement.

Which of the Following Disclosures Is Required for a Change