A company revised the estimated useful lives of its fixed assets, which resulted in an increase in the remaining lives of several assets Does GAAP permit the company to include, as income of the current period, the cumulative effect of the changes, which reduces the depreciation expense of past per...

No Accounting Principles Board Opinion No 20 Accounting Changes is q ...

A company revised the estimated useful lives of its fixed assets, which resulted in an increase in

Question:

A company revised the estimated useful lives of its fixed assets, which resulted in an increase in the remaining lives of several assets. Does permit the company to include, as income of the current period, the cumulative effect of the changes, which reduces the depreciation expense of past periods? Discuss.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...