A change in accounting entity is limited to presenting consolidated or combined financial statements in place of individual statements or a change in the subsidiaries that make up a group of companies in which one would report either as consolidated financial statements or changing the mix of companies included in the financial statements.

Question

Quizplus · Accepted Answer

A change in accounting entity involves changes in the reporting entity, such as presenting consolidated or combined financial statements instead of individual statements, or altering the subsidiaries that are included in the group of companies for which consolidated financial statements are prepared. This reflects a change in the way financial information is aggregated and presented, rather than a change in the accounting methods or estimates used for individual transactions.

A Change in Accounting Entity Is Limited to Presenting Consolidated