Read the scenario and associated questions below. Research the pertinent issues and write a three-to-four-page paper to explain the accounting options for the scenario.AT & T company was depreciating its antennas over 20 years. The total cost of the antennas accounted for 20 million dollars. It was recently discovered that the antennas useful life is only seven years due to new technological development.With reference to the above scenario answer the following questions.What is the accounting implication in this situation and why?What promulgated Accounting Standards should be followed? Provide your rationale.How and why should this discovery be recorded in the financial statements of the company? Explain your response.If the company issues quarterly financial statements and the discovery is made in the third quarter, should this impact be shown prospectively or retroactively and in what specific time period? Explain your response.As the accountant, what could you recommend to management and why?Prepare a paper addressing the accounting implications. Explain your rationale.

Useful life of Assets: The useful life of an asset is the time frame over which it is anticipated…

Answered: Read the scenario and associated…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Read the scenario and associated questions below. Research the pertinent issues and write a three-to-four-page paper to explain the accounting options for the scenario.

AT & T company was depreciating its antennas over 20 years. The total cost of the antennas accounted for 20 million dollars. It was recently discovered that the antennas useful life is only seven years due to new technological development.

With reference to the above scenario answer the following questions.

What is the accounting implication in this situation and why?
What promulgated Accounting Standards should be followed? Provide your rationale.
How and why should this discovery be recorded in the financial statements of the company? Explain your response.
If the company issues quarterly financial statements and the discovery is made in the third quarter, should this impact be shown prospectively or retroactively and in what specific time period? Explain your response.
As the accountant, what could you recommend to management and why?

Prepare a paper addressing the accounting implications. Explain your rationale.

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