CAF-6 · Chapter 12 · Question 15 of 15
A company holds an intangible asset with a finite useful life. Management decides to change the estimated useful life from 10 years to 6 years. How should this change be accounted for?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Prospectively as a change in accounting estimate over the remaining revised useful life.
Explanation
A change in useful life is a change in accounting estimate. Under IAS 8, changes in accounting estimates are accounted for prospectively.
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