Why this is mistaken
For a long-lived nonfinancial asset, a supported depreciation-method change is an estimate change effected by a principle change. Apply it prospectively to the carrying amount at the change date and retain the reason and preferability support. Do not rewrite prior depreciation.
Where to watch
When this mistake may appear
- The supported consumption pattern for a depreciable asset changes.
Check your work
Your work may contain this mistake if:
- Recomputes prior depreciation using the new method.