Reported in comparative financial statements


Omicron Co. made a justifiable change in its method of accounting for long-term contracts. The cumulative effect of this change in accounting principle should be reported in comparative financial statements:

a) Net of tax after discontinued operations and extraordinary items.

b) As a component of income from continuing operations.

c) As an adjustment of the beginning balance of retained earnings for the current period.

d) By retrospective application if practicable.

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Accounting Basics: Reported in comparative financial statements
Reference No:- TGS062708

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