A company has included in its consolidated financial statements this year a subsidiary acquired several years ago

Fantastic news! We've Found the answer you've been seeking!

Question:

A company has included in its consolidated financial statements this year a
subsidiary acquired several years ago that was appropriately excluded from consolidation
last year. This should be reported as
a. An accounting change that should be reported prospectively.
b. An accounting change that should be reported retrospectively.
c. A correction of an error.
d. Neither an accounting change nor a correction of an error.