A Change in the Estimated Useful Life of a Building

question 55

Multiple Choice

A change in the estimated useful life of a building:

• A) is not allowed under ASPE or IFRS.
• B) affects depreciation on the building beginning with the year of the change.
• C) must be handled as a retrospective adjustment to all accounts affected, back to the year of building acquisition.
• D) creates a new account to be recognized on the income statement, and reflects the depreciation difference up to the beginning of the year of change.

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Definitions:

Comparative Inferences

The act of drawing conclusions by examining the similarities and differences between two or more entities.

Comparative Inference

The process of drawing conclusions based on the comparison between different sets of data or information.

Testability Criterion

A principle used to assess if a hypothesis or theory can be tested and falsified through empirical investigation or experimentation.

Comparative Inferences

Drawing conclusions by comparing different sets of data, situations, or phenomena.