All of the following are considered to be changes in accounting entities that require retrospective restatement of past financial statements except
A) there is a change in the specific subsidiaries that make up the group of companies that are consolidated when financial statements are presented.
B) consolidated or combined statements are presented in place of the statements of individual companies.
C) the companies included in the combined financial statements change.
D) a company acquires a trademark and changes the name of its business operations.

Question

Quizplus · Accepted Answer

Changes in accounting entities typically involve alterations in the structure or composition of a reporting entity, such as changes in subsidiaries being consolidated or changes in the entities included in combined financial statements. Acquiring a trademark and changing the name of business operations does not alter the structure or composition of the entity itself; it is more related to branding and does not require a retrospective restatement of past financial statements.

All of the Following Are Considered to Be Changes in Accounting