Revising an estimate of the useful life or residual value of an item of property, plant and equipment is referred to as a change in accounting estimate, and is reflected in the past, current, and future financial statements.

Question

Quizplus · Accepted Answer

Revising an estimate of the useful life or residual value of an item of property, plant and equipment is indeed a change in accounting estimate, but it is only reflected prospectively in the financial statements, affecting the current and future periods, not the past.

Revising an Estimate of the Useful Life or Residual Value