Final answer:
The statement that changes in depreciation estimates should be handled in the current period only is incorrect. Changes should be accounted for prospectively, affecting the current and future periods. Other points provided in the question are correct regarding the revision of depreciation rates.
Step-by-step explanation:
All of the following statements regarding revision of depreciation rates are correct, except that changes in estimates should be handled in the current period only. When a change in depreciation estimate occurs:
- Opening balances are not adjusted; the change is accounted for prospectively.
- No entry is made at the time a revision of depreciation rates occurs because it is not a correction of an error.
- Depreciation is recalculated for the current and future periods, not just the current period; this is the statement that is incorrect in the question.
- Depreciation is indeed calculated by dividing the remaining carrying amount less any residual value by the remaining estimated life.
Therefore, the correct answer is that changes in estimates should be reflected in the financial statements prospectively, impacting both the current period and future periods, not just the current period only.