When an entity decides to change its method of depreciation (e.g., from reducing balance to straight-line) because the pattern of consumption of economic benefits has changed, how must this be recorded?

Test yourself: pick an answer

• A)Prospectively, by applying the new method to the carrying amount from the date of the change.
• B)Retrospectively, by recalculating all prior years and adjusting opening equity.
• C)By keeping the old method until the asset is completely written off.
• D)By taking the entire remaining carrying amount as an immediate expense.