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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.
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