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Replace Page from the Accounting Contract

Replace Page from the Accounting Contract

Aug 6th, 2022

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How to Replace Page from the Accounting Contract

4.6 out of 5

45 votes

In this video tutorial, the instructor explains how to account for changes in accounting estimates, which are crucial in financial reporting. Management must estimate various factors such as bad debt, useful life and salvage value of assets, and warranty liabilities. Since these estimates can be inaccurate, adjustments and revisions are necessary when new information arises. The tutorial emphasizes the concept of prospective application, which involves correcting the estimate without restating previous financial statements. For instance, if the useful life of an asset changes from 16 to 20 years, the depreciation is recalculated based on the new estimate for future periods only.

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