Changes in accounting entities that require retrospective restatement of past financial statements occur when
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)all of these

Question

Quizplus · Accepted Answer

Retrospective restatement of financial statements is required when there are changes in the accounting entities. These changes may include a change in the specific subsidiaries that make up the group of companies that are consolidated, the presentation of consolidated or combined statements instead of individual statements, or a change in the companies included in the combined financial statements. Therefore, option D is the correct answer.

Changes in Accounting Entities That Require Retrospective Restatement of Past