Company X recently revised the estimate of the useful life of one of its depreciable assets. How would Company X correctly report this change per U. S. GAAP

When you adjust the useful life of an asset, you must do it prospectively, i.e. the past depreciation is not adjusted, all you adjust is future depreciation expense. Since no journal entries are required to adjust past depreciation, the change in the asset's useful life are not part of any current financial statement. They should only affect future financial statements.

If the change is significant, e.g. a nuclear reactor's life is extended by 10 years, which reduces depreciation expense by $50 million per year, then it should be included in the footnotes. But if the change will not significantly alter any financial statement, e.g. the useful life of a machine is reduced in 5 years and will increase depreciation expense by $500 per year, then it may or may not be included in the footnotes depending on the size of the company.

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