Changes in asset lives and salvage values are changes in accounting: estimates and are applied prospectively....
Changes in asset lives and salvage values are changes in accounting:
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estimates and are applied prospectively. |
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principle and are applied retrospectively. |
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estimates and are applied retrospectively. |
Homework Answers
Hi
Changes in asset lives and salvage values are change in accounting estimate, prior period accounting dont need to be restated because it does not represent error in prior period calculation and in future also this process can be revised.
So Changes in asset lives and salvage value are change in accounting estimate and applied prospectively.
So first option is correct.
Thanks
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Changes in asset lives and salvage values are changes in accounting: estimates and are applied prospectively....
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Which of the following is true of accounting for changes in accounting estimates O Changes in estimates are not carried back to prior years. None of the answers are correct. Changes in estimates have no impact on the financial statements. Changes in estimates are considered errors. O A company recognizes a change in estimate by making a retrospective adjustment to the financial statements QUESTION 12 Accounting information is considered to be relevant when it can be depended on to represent...
An asset has the estimated salvage values for various lives, shown in the table below. For each possible life from 1 to 6 by 1, determine the capital e overy cost for MARR of 8% year. EOY NCF Estimated SV $105,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $85,000 $65,000 $55,000 $45,000 $40,000 $37,000 $105,000 Capital recovery cost with 1-year life 210000 Capital recovery cost with 2 years life 50096 Capital recovery cost with 3 years life 45469 Capital recovery cost...
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