A change in the estimated useful life of a tangible operational asset may be required due to economic or technological changes.

Question

Quizplus · Accepted Answer

Economic or technological changes can affect the useful life of a tangible operational asset and may require a change in the estimated useful life. This change could be due to factors such as advancements in technology or changes in market conditions, which may impact the length of time an asset remains useful to a business. To ensure accurate financial reporting, businesses should regularly review and adjust their estimates of asset useful lives as needed.

A Change in the Estimated Useful Life of a Tangible