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NEW QUESTION: 1
Which statement is not true concerning changes in depreciation method?
A. When a new method of depreciation is applied retroactively, companies must disclose the pro forma impact of the new method on prior periods. The cumulative effect of the change must be reported separately and net of taxes.
B. A company can change its depreciation method only for newly acquired assets and continue to depreciate previously acquired similar assets using the same method as in the past.
C. Changes in salvage values are considered changes in accounting principle.
Answer: C
Explanation:
Changes in salvage values and asset lives are changes in accounting estimates and are not considered changes in accounting principle.

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