Changes in depreciation method under IFRS are reported in current and future periods, but under U.S. GAAP such changes are treated as prior period adjustments.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, changes in depreciation method are treated as a change in accounting estimate and are reported prospectively. Therefore, the effect of the change is measured from the current period onwards rather than as a prior period adjustment.

Changes in Depreciation Method Under IFRS Are Reported in Current