Presenting consolidated financial statements this year when statements of individual companies were presented last year is
A) a correction of an error.
B) an accounting change that should be reported prospectively.
C) an accounting change that should be reported by restating the financial statements of all prior periods presented.
D) not an accounting change.

Question

Quizplus · Accepted Answer

Presenting consolidated financial statements when previously only individual company statements were presented is considered an accounting change that requires the restatement of all prior periods presented to ensure comparability across the financial statements.

Presenting Consolidated Financial Statements This Year When Statements of Individual