Mansfield Limited discovered that the useful life of the machinery determined for accounting purposes does not reflect the way the machinery is used in the business. Hence, the accountants recommended that the useful life should be amended. The correct accounting treatment for this event is to: treat it as a change in an accounting estimate and adjust prospectively. disclose the change in the notes to the financial statements treat it as an error and adjust retrospectively, treat it as a change in an accounting estimate and adjust retrospectively. Question 6 0.5 pts What factor/factors should be considered when determining whether an accounting item is material for the purpose of preparation of financial statements: its fair value and nature, its nature its size and nature its size and fair value