Which of the Following Is Not Correct Regarding a Change

question 6

Multiple Choice

Which of the following is not correct regarding a change in reporting entity?

• A) Financial statements of the year in which the change in reporting entity is made should disclose the nature of the change and the reason for the change.
• B) The effect of the change on income before extraordinary items, net income, and earnings per share amounts should be reported for all periods presented.
• C) Financial statements presented for all prior periods must be restated.
• D) The effect of the change on income before extraordinary items, net income, and earnings per share amounts should be reported for all periods presented and must be repeated in all periods subsequent to the period of the change.

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