term used when two or more previously separate companies are combined into one. Typically, the financial statements for the five years preceding the change arerestated to present income before extraordinary items, net income, and earnings per share as if both companies were combined during that period. The restatement is typically for a period of five years. A footnote should disclose the nature of and reason for the change.
Dictionary of Accounting Terms for: change in reporting entity
change in reporting entity