Final answer:
Under both IFRS and GAAP, changes in depreciation method and useful life are treated differently with each having specific guidelines, both require prospective application for changes, and IFRS is generally viewed as more flexible.
Step-by-step explanation:
Changes in depreciation method and changes in useful life under IFRS and GAAP are treated differently, with each having specific guidelines. Under GAAP, a change in depreciation method is considered a change in accounting estimate effected by a change in accounting principle. Hence, GAAP requires such changes to be applied prospectively. In contrast, IFRS treats a change in depreciation method as a change in accounting estimate, and such changes are also applied prospectively. When it comes to changes in useful life, both IFRS and GAAP require that these changes be accounted for prospectively as a change in accounting estimate. However, IFRS tends to be perceived as allowing more flexibility since the guidelines are less prescriptive than GAAP, which offers very detailed implementation guidance.