Income statements to be inconsistent

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FASB Statement No. 154 changed the requirements for disclosures of accounting changes. Why could this be a concern to the analyst?

a) The new disclosure rules cause the income statements to be inconsistent from year to year.

b) This is not a concern to the analyst as the new rules have improved financial reporting.

c) The rule change has caused U.S. income statements to differ from income statements prepared using the international accounting rules.

d) The new rules may encourage firms to change methods for the purpose of boosting earnings since the accounting change is no longer prominently displayed on the income statement.

Reference no: EM132149243

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