Z Company has included in its consolidated financial statements this year a subsidiary acquired several years ago that was appropriately excluded from consolidation last year. This results in:
A)An accounting change that should be reported prospectively.
B)A correction of an error.
C)An accounting change that should be reported by restating the financial statements of all prior periods presented.
D)Neither an accounting change nor a correction of an error.

Question

Quizplus · Accepted Answer

The Answer of Z Company has included in its consolidated financial statements this year a subsidiary acquired several years ago that was appropriately excluded from consolidation last year. This results in:
A)An accounting change that should be reported prospectively.
B)A correction of an error.
C)An accounting change that should be reported by restating the financial statements of all prior periods presented.
D)Neither an accounting change nor a correction of an error.

Z Company Has Included in Its Consolidated Financial Statements This