Changed from the LIFO to the FIFO inventory cost flow assumption Reduced remaining service life of machinery from 10 to 8 years. Indicate what type of accounting change or error, if any, is represented by each of the preceding items and the method of accounting (retrospective adjustment, prospective, or prior period adjustment) lor the item in the financial statements of the current year. Next Level Indicate the effect on the financial statements of the item (e.g., which accounts or line items are affected and is the effect an increase or a decrease)