In those cases where a change in principle requires retroactive treatment,

Select one:

a. the cumulative effect of the change (net of contributions) is reported in the statement of income and expenses for the period in which the change occurred.

b. the initial balance of retained earnings (as originally reported) is adjusted for the cumulative effect of the change (before contributions).

c. the initial balance of retained earnings (as originally reported) is adjusted for the cumulative effect of the change (net of contributions).

d. the cumulative effect of the change (before contributions) is reported in the statement of income and expenses for the period in which the change occurred.