Which of the following statements is correct regarding accounting changes that result in financial statements that are, in effect, the statements of a different reporting entity?

a. Cumulative-effect adjustments should be reported as separate items on the financial statements pertaining to the year of change.

b. No restatements or adjustments are required if the changes involve consolidated methods of accounting for subsidiaries.

c. No restatements or adjustments are required if the changes involve the cost or equity methods of accounting for investments.

d. The financial statements of all prior periods presented are adjusted retrospectively.