Asked by Selia Bennett on May 23, 2024
Verified
Once the useful life of a depreciable asset has been estimated and the amount to be depreciated each year has been determined, the amounts cannot be changed.
Depreciable Asset
An asset that loses value over time due to usage, wear and tear, or obsolescence, which can be an expense on the income statement over its useful life.
- Gain an understanding of the key concepts and techniques involved in calculating depreciation on fixed assets.
- Understand the idea and consequences of modifying asset residual value and depreciation rates.
Verified Answer
PB
Pattiya BuayeunMay 26, 2024
Final Answer :
False
Explanation :
The estimated useful life and depreciation amount can be revised if there is a significant change in the expected usage or residual value of the asset. This is called a change in accounting estimate and requires disclosure in the financial statements.
Learning Objectives
- Gain an understanding of the key concepts and techniques involved in calculating depreciation on fixed assets.
- Understand the idea and consequences of modifying asset residual value and depreciation rates.
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