Accounting for a change in the estimated service life of equipment:
A) Is handled prospectively.
B) Requires retroactive restatement of prior year's financial statements.
C) Requires a prior period adjustment.
D) Is handled currently as a change in accounting principle.

Question

Quizplus · Accepted Answer

Accounting for a change in the estimated service life of equipment is handled prospectively, meaning it affects the financial statements in the current and future periods, but not retrospectively.

Accounting for a Change in the Estimated Service Life of Equipment