When either the estimated useful life or estimated residual value (or both)of an operational asset are changed,all prior financial statements are reissued reflecting the correction retroactively.

Question

Quizplus · Accepted Answer

When the estimated useful life or residual value of an asset changes, it is treated as a change in accounting estimate and is applied prospectively, not retroactively. Prior financial statements are not reissued.

When Either the Estimated Useful Life or Estimated Residual Value