Which of the following is a change in reporting entity?
A) A change to the full cost method in the extractive industries.
B) Discontinuing a segment of operations.
C) A change from the cost to the equity method.
D) Consolidating a subsidiary not previously included in consolidated financial statements.

Question

Quizplus · Accepted Answer

Consolidating a subsidiary not previously included in consolidated financial statements is a change in reporting entity as it involves adding a new entity to the financial statements, which can significantly impact the financial results and disclosures. The other options involve changes in accounting policies or segment reporting, but do not constitute a change in reporting entity.

Which of the Following Is a Change in Reporting Entity