Which of the following is true when the estimate of an asset's useful life is changed?

Question

Quizplus · Accepted Answer

When the estimate of an asset's useful life is changed, the remaining depreciable book value of the asset will be spread over the asset's remaining life. This means that the depreciation expense in the current and future years will change to reflect the new estimate, but the prior years' financial statements do not need to be restated. Option A is incorrect as the new estimate affects all years remaining in the asset's life, not just the last year. Option B is incorrect as only the depreciation expense in the current and future years will be affected, not the prior years. Option C is also incorrect as restating prior years' financial statements is not required in this scenario.

Which of the Following Is True When the Estimate of an Asset's