Situation 3

A company decides in January 2014 to adopt the straight-line method ofdepreciation for plant equipment. This method will be used for new acquisitionsas well as for previously acquired plant equipment for which depreciation hadbeen provided on an accelerated basis.Required:For each of the preceding situations, provide the information indicated below

Required:

A) type of accounting change?

B) manner of reporting the change under current GAAP, including a discussion, where applicable, of how amounts are computed?

C) Effects of change on the statement of financial position and earnings statement?

D) required e disclosures?