Question

Goosen Company bought a copyright for $90,000 on January 1, 2018, at which time the copyright had an estimated useful life of 15 years. On January 5, 2021, the company determined that the copyright would expire at the end of 2026. How much should Goosen record retrospectively as the effect of change

Answer 1

Answer:

The correct answer is : $0

Explanation:

The retrospective approach means that you have to apply the change in principle to the financial outcomes of previous periods or time, as though the new one had always been in use.  It has to take into account the cumulative effect of the change on periods prior and the financial statements have to presented to reflect the change to the new one.