CAT / FIA FFA Syllabus D. Recording Transactions And Events - Change in useful life. - Notes ^{4 / 5}

The useful life of an item of property, plant and equipment should be reviewed at least every financial year-end and, if expectations are significantly different from previous estimates, the depreciation charge for current and future periods should be revised.

This is achieved by writing the net book value off over the asset's revised remaining useful life.

NBV – residual value
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Revised useful life