After taking five years straight-line depreciation expense for an asset that was expected to have an eight-year

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After taking five years’ straight-line depreciation expense for an asset that was expected to have an eight-year useful life, a company decided that the asset would last another six years. Is this decision a change in accounting policy? How would the financial statements describe this change?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Fundamental Accounting Principles Volume II

ISBN: 978-1259066511

14th Canadian Edition

Authors: Larson Kermit, Jensen Tilly

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