The following are various types of accounting changes: For each change or error, indicate how it would be accounted for assuming the company follows IFRS. Accounting Treatment 1. Change in a plant asset's residual value Accounted for in the current year only Accounted for prospectively Accounted for retrospectively None of the above, or unable to determine 2. Change due to an overstatement of inventory (in the preceding period) Change from sum-of-the-years'-digits to straight-line method of depreciation 3. because of a change in the pattern of benefits received 4. Change in a primary source of GAAP Decision by management to capitalize interest. The company is reporting a 5. self-constructed asset for the first time. 6. Change in the rate used to calculate warranty costs 7. policy 8. Change in a patent's amortization period Change from an unacceptable accounting policy to an acceptable accounting 9. Change from the zero-profit method to the percentage-of-completion method on construction contracts. This change was a result of experience with the project and improved ability to estimate the costs to completion and therefore the percentage complete Recognition of additional income tax owing from three years ago as a result of improper calculations by the accountant, who was not familiar with income 10. tax legislation and income tax returns The following are various types of accounting changes: Identify the type of change for each of the situations. Type of change 1. Change in a plant asset's residual value Accounting error correction Change in estimate Change in policy Not an accounting change 2. Change due to an overstatement of inventory (in the preceding period) Change from sum-of-the-years'-digits to straight-line method of depreciation because of a 3. change in the pattern of benefits received 4. Change in a primary source of GAAP Decision by management to capitalize interest. The company is reporting a self-constructed 5. asset for the first time. 6. Change in the rate used to calculate warranty costs 7. Change from an unacceptable accounting policy to an acceptable accounting policy 8. Change in a patent's amortization period 9. Change from the zero-profit method to the percentage-of-completion method on construction contracts. This change was a result of experience with the project and improved ability to estimate the costs to completion and therefore the percentage complete. Recognition of additional income tax owing from three years ago as a result of improper calculations by the accountant, who was not familiar with income tax legislation and income 10. tax returns