单选题

A company changes from an incorrect method of accounting to an acceptable one. Which of the following statements about this change is most accurate?（）

A、 It is a prior period adjustment and can be accounted for by restating results for all prior periods that are presented in the current financial statements.
B、 It is an extraordinary item and is reported net of taxes below the operating income line.
C、 If the change is voluntary, it is a change in accounting principle and is reported below the line net of taxes.

【正确答案】 A

【答案解析】

This is the correct treatment of this change. The company must disclose the nature of the error and its effect on net income and restate any prior period results that are presented in the current financial statements. The other choices are incorrect.