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Revision of Estimated Useful Life of Depreciable Asset

In case the useful life of the asset is changed, the unamortized amount should be charged to the asset over the revised remaining estimated useful life of the asset. Such a revision should be treated as a change in the accounting estimate and should be disclosed in the financial statements.
 

In case of revaluation of depreciable asset, the depreciation should be charged on the revalued amount on the basis of remaining estimated useful life of the asset.





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