A change in the estimated residual value of property, plant, and equipment requires a restatement of prior years' depreciation.

Name: A change in the estimated residual value of property, plant, and equipment requires a restatement of prior years' depreciation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A change in the estimated residual value of property, plant, and equipment affects future depreciation calculations but does not require a restatement of prior years' depreciation. It is accounted for prospectively.

A Change in the Estimated Residual Value of Property, Plant