If consolidated statements are presented for the first time instead of statements of several individual companies, this change should be accounted for

A) retrospectively
B) prospectively
C) by cumulative effect adjustment
D) by footnote disclosure only

Consolidated Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single entity.

Retrospectively

Relating to the application of changes or the analysis of past events or periods in a manner that considers previous conditions or policies as if they were still in effect.

Individual Companies

Refers to separate, distinct legal business entities, as opposed to conglomerates or groups of companies under common ownership or control.