The income effect of a change in reporting entity is shown separately in the income statement in the year of the change.

Name: The income effect of a change in reporting entity is shown separately in the income statement in the year of the change.
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The income effect of a change in reporting entity is not shown separately in the income statement; instead, it is typically reflected in the financial statements retrospectively as if the new reporting entity had always existed.

The Income Effect of a Change in Reporting Entity Is