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　　A company changes from an accounting principle that is not generally accepted to one that is generally accepted. The effect of the change should be reported, net of applicable income taxes, in the current
　　A. Retained earnings statement as an adjustment of the opening balance.
　　B. Retained earnings statement after net income but before dividends.
　　C. Income statement after income from continuing operations and before extraordinary items.
　　D. Income statement after extraordinary items.
　　Answer:A
　　A is corrent. ASC Topic 250 states that a change from an accounting principle that is not generally accepted to one that is generally accepted should be treated in the same manner as a correction of an error. A correction of an error should be reported as a prior period adjustment. This means that the cumulative effect at the beginning of the period of change is entered directly as an adjustment to the opening balance of retained earnings. When comparative statements are presented, prior years’ statements are retroactively restated.