PRC-1 · Chapter 6 · Question 88 of 100
Which of the following requires a formal change in the depreciation rate or method?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) There is a significant change in the expected pattern of consumption of the future economic benefits embodied in the asset.
Explanation
IAS 16 states that the depreciation method shall be reviewed at least annually, and if there has been a significant change in the expected pattern of consumption of future economic benefits, the method shall be changed to reflect that pattern.
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