Which of the following is a change in an estimate?
A)A company changes the presentation of operating expenses from "by function" to "by nature."
B)An enterprise switches from the gross method to the net method of presenting government grants.
C)A temporary difference was treated as a permanent difference.
D)The useful life on a building was originally estimated to be 20 years but the estimated useful life of the building is changed to only 15 years as at the beginning of the year.

Question

Quizplus · Accepted Answer

Changing the estimated useful life of an asset, such as a building, is a change in accounting estimate. This involves revising an estimate based on new information or new developments and is accounted for prospectively.

Which of the Following Is a Change in an Estimate