Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Knights Ltd has discovered that the estimated useful life on a material depreciable asset was overestimated. The correct accounting treatment of this event is to:

Knights Ltd has discovered that the estimated useful life on a material depreciable asset was overestimated. The correct accounting treatment of this event is to:

A. treat it as a change in an accounting estimate and adjust retrospectively.

B. treat it as an error and adjust retrospectively.

C. disclose the change in the notes to the financial statements.

D. treat it as a change in an accounting estimate and adjust prospectively.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

9.126 True or false The power of a test = 1 - P1Type II error2.

Answered: 1 week ago