Page 241 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

IAS 2, 8, 10, 34 and IIFRS 8

Exxampple 4

An aasset was purchasedd three yeaars ago on 1 July 20XX0 for $1000,000 at
whicch time it wwas thoughht that the asset had no residuaal value annd a useful
ecoonomic life of ten years. The dirrectors havve decided that as a rresult of ussing
the asset morre than wass originallyy planned tthe remaining useful economic life
is only five yeaars as at 1 July 20X33. The asset is depreeciated on t the straighht
line basis.

Reqquired:

Shoow how thhe change in accounnting estimmate will bbe recordeed in the
finaancial stattements foor the yearr ended 300 June 20XX4.

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