On 1 July 2016 Sunderland Ltd purchased equipment for $400,000 to be used to manufacture metal sheets to be used in the manufacture of its products. On this date, it was estimated that the equipment had a useful life of ten years and a residual value of $40,000. Sunderland Ltd uses the straight-line method of depreciation for all items of property, plant, and equipment. In early 2021, management of Sunderland Ltd became aware that the performance of the equipment was well in excess of the standard expected of an item of equipment that had been used for just over four and a half years. In April 2021, management of Sunderland Ltd decided to review the useful life and residual value of the equipment. Sunderland Ltd engaged the services of technical experts who evaluated the equipment and prepared a report which advised that, as at 30 June 2021, the remaining useful life of the equipment was six years (that is, eleven years in total) and its residual value was $46,000. Management of Sunderland Ltd accepts the experts report and changes the useful life and residual value of the item of equipment on 30 June 2021. The management of Sunderland Ltd intends to treat the change in useful life and the reassessment of the residual value as a correction of a prior-period error and to retrospectively restate the opening balance of retained earnings as at 1 July 2020.

Prepare the appropriate note disclosure for Sunderland Ltds financial statements for the year ended 30 June 2021.