Changes in amortization,depletion,and depreciation effected by a change in accounting principle are are handled prospectively.

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When there is a change in accounting principle, the amortization, depletion, and depreciation are handled prospectively, which means that the change only affects future periods and not the past periods. This is because these expenses are based on estimates of the useful life of the assets, and changing the estimates can have a significant impact on the financial statements. Therefore, to avoid distortion of the financial statements, the changes are applied prospectively.

Changes in Amortization,depletion,and Depreciation Effected by a Change in Accounting