When There Is a Change Made to the Useful Life

question 34

Multiple Choice

When there is a change made to the useful life of an asset:

• A) It must be recognised as a change in an accounting estimate and the impact of the reported change must be disclosed in the notes to the accounts.
• B) It must be recognised as an error and all previous financial statements must be restated.
• C) It must be recognised as an error and opening retained earnings and opening balances of the asset must be restated.
• D) It is recognised as a change in an accounting estimate and the opening retained earnings and opening balances of the asset must be restated.

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Definitions:

Emotional Control

The ability to manage and regulate one's emotional responses to situations in an effective manner.

Negative Emotions

are feelings that cause distress or discomfort, such as sadness, anger, fear, or jealousy.

Emotional Style

Refers to a person's characteristic way of perceiving, experiencing, and responding to emotions.

Think Before They Act

A principle that emphasizes the importance of reflection and planning before taking any action to ensure thoughtful and informed decisions.