Pason Systems Inc. changed its component depreciation policy for its rental equipment. In the notes to its financial statements, it commented that "Rental equipment, which was previously depreciated on a unit-of-use method, is now depreciated on the declining-balance method at an annual rate of 20% with no residual value. Management believes that because of the nature of the Company's rental systems, which are comprised of a significant number of component parts, that the declining balance method is most appropriate as it treats all of the parts as a pool of assets rather than discrete rental units." Explain how this change in accounting policy would have affected Pason Systems' financial statements.