On 1 July 2018, Phoenix Ltd acquired equipment for $1 000 000 with an estimated life of 20 years and a residual value of nil. Phoenix Ltd uses the straight-line method of depreciation. At 1 July 2022, experts have advised that due to climate change impacts, the machinery should be depreciated over a total period of 10 years.

Required:(You may ignore tax and the time value of money; no journal narrations are required)

1. Is this a change in estimate or change in accounting policy? (Hint: see AASB 108 (Accounting Policies, Changes in Accounting Estimates and Errors - paragraph 32(d))(1 mark)
2. Assuming it is a change in estimate, show the journal entries relating to the equipment from 1 July 2018 to 30 June 2023. You may ignore tax and the time value of money. Please refer to AASB 108 (Accounting Policies, Changes in Accounting Estimates and Errors - paragraphs 32-40)(5 marks)
3. Prepare the note required by AASB 108 (Accounting Policies, Changes in Accounting Estimates and Errors) for this change by Phoenix Ltd for the year ended 30 June 2023. (2 marks)