What would be the accounting treatment to previously classified PPE amounting to P15,001 to P50,000 now classified as Semi-Expendable Property for current and prior years?

For CY 2022 onwards, reclassify such PPE as Semi-expendable Property inventory, reverse any depreciation/accumulated depreciation and determine the impairment loss.

For prior years, restate the amounts in prior years using the current accounting policy as if it was used from the beginning and close the related depreciation/impairment/taxes to retained earnings account.

(Source: COA Circular No. 2022-004)

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