Final answer:
A change in the estimated residual value of a long-lived asset does not require a restatement of prior years' depreciation; the adjustment is made on a prospective basis affecting only future depreciation calculations.
Step-by-step explanation:
The question you've asked pertains to how a change in the estimated residual value of a long-lived asset is accounted for in terms of depreciation. The answer is false. A change in the estimated residual value of a long-lived asset does not require the restatement of prior years' depreciation. Instead, the depreciation expense is adjusted on a prospective basis. The revised estimate will affect the calculation of depreciation in the current and future periods only, from the point the estimate was changed. This adjustment ensures that the remaining book value of the asset is allocated over its remaining useful life.
It's important to note that any change in the estimated useful life or depreciation method used for an asset would also be accounted for on a prospective basis and not by restating prior periods.