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in this presentation we will discuss change in estimates related to the calculation of depreciation remember that depreciation is the allocation of the cost of property plant and Equipment over the useful life therefore when we purchase the equipment even if we paid cash for it were putting it on the books as an asset rather than expensing it at the time of purchase and then were going to allocate the cost over the life of that asset in ance with the matching principle trying to match up the um the expense with the related period in which it helps to generate Revenue so as we consume the property plant and equipment we want to write off the expense when it has been consumed to help generate Revenue that gives us the best matching principle the best comparability now to do that of course we have to use an estimate to do that so its not perfect when we make this estimate and our estimating methods might be something like straight line or accelerated method like double declining balanc
