AT & T company was depreciating its antennas over $20$ years. The total cost of the antennas accounted for $20$ million dollars. It was recently discovered that the antennas useful life is only seven years due to new technological development. 

 

With reference to the above scenario answer the following questions.

What is the accounting implication in this situation and why?

What promulgated Accounting Standards should be followed? Provide your rationale.

How and why should this discovery be recorded in the financial statements of the company? Explain your response.

If the company issues quarterly financial statements and the discovery is made in the third quarter, should this impact be shown prospectively or retroactively and in what specific time period? Explain your response.

As the accountant, what would you recommend to management and why?