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in this video Iamp;#39;m going to show you how to account for a change in reporting entity but letamp;#39;s first understand what that means so a change of reporting entity is that thereamp;#39;s different companies that are now being consolidated or not consolidated by your firm and thatamp;#39;s gonna change the accounting because weamp;#39;re gonna go back and retrospectively change the prior periods financial statements to reflect what the financials would have been if this was the case the past few years so let me give an example letamp;#39;s say that your company owns 30% of another company then you account for that using the equity method but then you go and you purchase more shares of stock in that same company and now you own 65% of that company and so when you own 65% we say you control that company you would use the consolidation method you would consolidate that companyamp;#39;s financial results their revenues assets liabilities and so forth when youamp;#39;re pres
