ACCA P2 Accounting policies, changes in accounting estimate and errors (IAS 8)

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1. nomana says

   February 7, 2018 at 4:39 am

   A machine was bought on 1st Jan 20X0 for $250,000. On 1st Jan 20X3 total useful life changed from 10 to 15 years and residual value changed from $5000 to $10000. Year end is 31st December.
   Solution:
   Acc dep= 250000-5000/10*3=73500
   C.V = 250000-73500=176500
   Revised dep= 176500-10000/12= 13875
   Notes to accounts:
   *Increase in current year profit =24500-13875= 10625
   *increase/decrease in future year profit ????????
   I want to know how to find effect on future profits?

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2. nomana says

   February 7, 2018 at 4:26 am

   Please explain how to find effect on future profits due to change in residual value of asset?

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