question archive Fenimore Company purchased a copyright from another company early in 2020 for $50,000
Subject:BusinessPrice: Bought3
Fenimore Company purchased a copyright from another company early in 2020 for $50,000. Fenimore had not amortized the copyright because its value had not been diminished. The copyright has a useful life at purchase of 20 years.
Why is this not treated prospectively and is instead treated respectively?
Is this considered as a change in accounting policy, change in accounting estimate, or an accounting error?