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In this video tutorial, the focus is on accounting for changes in accounting estimates. Estimates play a significant role in accounting, such as assessing bad debt, useful life, and salvage value of property, plant, and equipment, as well as warranty liabilities. Managers may make errors in these estimates, necessitating adjustments and revisions. The process involves prospective application, which means correcting the mistake and moving forward without restating prior financial statements. For example, if the useful life of an asset is adjusted from 16 years to 20 years, the new depreciation is recalculated and applied going forward.