Explain a change in reporting entity

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Problem - Accounting Changes - The various types of accounting changes may significantly affect the presentation of a company's financial statements and also affect the trends shown on its comparative financial statements and historical summaries.

Required -

1. Explain a change in accounting principle and how a company reports it in the period of the change.

2. Explain a change in accounting estimate and how a company reports it in the period of the change.

3. Explain a change in reporting entity and how a company reports it. Give an appropriate example of a change in reporting entity.

Reference no: EM132892226

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