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. 2. Change in a plant asset's residual value 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 change in the pattern of benefits received 3. Change in a primary source of GAAP 5. Decision by management to capitalize interest. The company is reporting a self-constructed asset for the first time. Decision by management to capitalize interest. The company is reporting a self-constructed asset for the first time. > 5. ble Accounted for the current year only Accounted for prospectively Accounted for retrospectively None of the above, or unable to determine as a ge ago was not