Which one of the following is not a change in a reporting entity?
A) the purchase of a new subsidiary
B) presenting a consolidated statement for the first time
C) changing the specific subsidiaries that make up the group of entities presented in the financial statements
D) changing the entities in combined financial statements

Question

Quizplus · Accepted Answer

The purchase of a new subsidiary is a business combination, not a change in the reporting entity. Changes in a reporting entity typically involve changes in the entities that are included in the financial statements, such as in options B, C, and D.

Which One of the Following Is Not a Change in a Reporting