Which of the following is an example of a material accounting change that requires recognition in an unqualified opinion on the entity's financial statements?
A)A change in the estimate of useful lives used to depreciate property, plant, and equipment.
B)A change in the entity's form of reporting entity.
C)Management has changed from one generally accepted accounting principle to another but has not provided reasonable justification.
D)A change from an accounting principle that conforms with GAAP to one that does not.

Question

Quizplus · Accepted Answer

A change in the entity's form of reporting entity is considered a material accounting change that requires recognition in an unqualified opinion on the entity's financial statements. This is because it can significantly affect how the financial statements are presented and interpreted, impacting comparability over time.

Which of the Following Is an Example of a Material