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

question 42

Multiple Choice

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.

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Definitions:

Gain or Loss

The financial result of disposing or selling an asset or investment, measured by the difference between the sale price and the asset's book value.

Equipment

Tangible assets used in the operation of a business to produce goods or provide services, such as machinery, computers, or tools.

Double-declining-balance

An accelerated depreciation method that calculates depreciation at twice the rate of the straight-line method.

Salvage Value

The assessed end-of-life residual value of an asset at the point of its usefulness completion.