Which of the following accounting treatments is proper for a change in reporting entity?
A) restatement of all financial statements presented
B) restatement of current period financial statements
C) note disclosure and supplementary schedules
D) adjustment to retained earnings and note disclosure

Question

Quizplus · Accepted Answer

A change in reporting entity requires that the financial statements of all prior periods presented be restated as if the new reporting entity existed in all those periods. This ensures comparability across periods.

Which of the Following Accounting Treatments Is Proper for a Change