Practice prompt · Q:statement-presentation-comprehensive-income-and-disclosure/reclassification-control-001

Control a statement reclassification

Tests whether a learner preserves measurement and articulation while changing a balance sheet or performance caption.

Updated Aug 7, 2026 Review due Nov 7, 2026

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Granite Harbor moves an amount from one statement caption to another without a new recognition or measurement event. Which procedure provides the strongest reclassification control?

Choose the best answer. a Preserve the recognized amount and measurement basis, move it through a controlled from-to map, recompute affected subtotals, reconcile every statement and note, and document why the destination caption is supported. b Change the amount until the destination subtotal equals the prior draft subtotal. c Post no control because total assets and total claims were equal before the move. d Rename the caption only; line-item labels do not affect articulation or interpretation.

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Answer: a

Choice a. Control source, destination, unchanged measurement, affected subtotals, cross-statement and note ties, authority, and approval.