CAF-1 · Chapter 3 · Question 11 of 15
A change in the depreciation method applied to an asset is accounted for as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A change in an accounting estimate.
Explanation
A change in the depreciation method reflects a shift in the expected pattern of consumption and is accounted for prospectively as a change in accounting estimate.
More IAS 16 Property, Plant and Equipment MCQs
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