On 30 June 2023, the end of the current reporting period, Cairns Ltd made a decision, using the information obtained over the past few years, to revise the useful life of an item of plant acquired three years earlier for $3 000 000. The useful life was revised from being a total of eight years to being a total of 12 years. The plant was originally depreciated on the straight-line basis over its useful life and it was expected that the asset would have no residual value. No depreciation has been provided in the current period and tax implications can be ignored.

REQUIRED

a. Prepare the journal entry to account for the change in accounting estimate.

b. Assuming that the change in accounting estimate had a material effect on financial performance for the period, prepare an appropriate supporting note.