Which of the following statement is correct regarding accounting changes that result in financial statements that are effect the statements of a different reporting entity? a.The financial statements of all prior periods presented are adjusted retrospectively. b.No restatements or adjustments are required if the changes involve the cost r equity methods of accounting for investments. c.Cumulative-effect adjustments should be reported as a separate item in the financial statements pertaining to the year of the change. d.No restatements or adjustments are required if the changes involve the cost or equity methods of accounting for investments.
Which of the following statement is correct regarding accounting changes that result in financial statements that are effect the statements of a different reporting entity? a.The financial statements of all prior periods presented are adjusted retrospectively. b.No restatements or adjustments are required if the changes involve the cost r equity methods of accounting for investments. c.Cumulative-effect adjustments should be reported as a separate item in the financial statements pertaining to the year of the change. d.No restatements or adjustments are required if the changes involve the cost or equity methods of accounting for investments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statement is correct regarding accounting changes that result in financial statements that are effect the statements of a different reporting entity?
a.The financial statements of all prior periods presented are adjusted retrospectively.
b.No restatements or adjustments are required if the changes involve the cost r equity methods of accounting for investments.
c.Cumulative-effect adjustments should be reported as a separate item in the financial statements pertaining to the year of the change.
d.No restatements or adjustments are required if the changes involve the cost or equity methods of accounting for investments.
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