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In this video tutorial, the presenter explains how to account for changes in accounting estimates. Estimates are crucial in accounting, as managers assess aspects like bad debt, useful life, salvage value of property, and warranty liabilities. Since these estimates can sometimes be incorrect, adjustments and revisions are necessary. The video introduces the concept of prospective application, where errors are corrected moving forward rather than restating previous financial statements. For example, if the useful life of an asset changes from 16 to 20 years, the new depreciation is calculated based on the revised estimate for future financial reporting.