Which of the following is not a justification for a change in depreciation methods?
A) A change in the estimated useful life of an asset as a result of unexpected obsolescence
B) A change in the pattern of receiving the estimated future benefits from an asset
C) To conform to the depreciation method prevalent in a particular industry
D) A change in the estimated future benefits from the asset

Question

Quizplus · Accepted Answer

Conforming to the prevalent depreciation method in a particular industry is not a valid justification for a change in depreciation methods. The choice of depreciation method should be based on the company's accounting policies and the nature of the asset being depreciated. A change can only be made if there is a change in the estimated future benefits from the asset, a change in the estimated useful life of an asset as a result of unexpected obsolescence or a change in the pattern of receiving the estimated future benefits from an asset.

Which of the Following Is Not a Justification for a Change