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In this tutorial, the speaker explains how to account for changes in accounting estimates, emphasizing their significance in accounting practices. Managers frequently make estimates related to bad debts, useful life and salvage value of assets, and warranty liabilities. Due to the nature of estimates, inaccuracies can occur, necessitating adjustments and revisions. The tutorial introduces the concept of prospective application, which allows for correcting mistakes without restating prior financial statements. For instance, if the useful life of an asset is revised from 16 to 20 years, the updated depreciation is calculated and applied moving forward.