All of the following situations require a retrospective application of a change in a reporting entity except for:
A)Presenting consolidated financials rather than individual statements for separate entities.
B)Changing the specific subsidiaries that make up a consolidated entity.
C)Presenting foreign subsidiaries in addition to domestic subsidiaries.
D)Changing entities that are included in combined financial statements.

Question

Quizplus · Accepted Answer

Presenting foreign subsidiaries in addition to domestic subsidiaries does not require retrospective application of a change in reporting entity since it does not involve a change in the entities included in consolidated or combined financial statements. Choices A, B, and D involve changes in the composition of consolidated or combined financial statements, which require retrospective application.

All of the Following Situations Require a Retrospective Application of a Change