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On august 31 of the current​ year, harvey co. decided to change from the fifo periodic inventory system to the​ weighted-average periodic inventory system. harvey uses u.s. gaap​, is on a calendar year​ basis, and does not present comparative financial statements. the cumulative effect of the change is​ determined:

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The answer is "As of January 1, Year 1".

The cumulative impact of an adjustment in accounting rule squares with the difference between retained income toward the start of time of the change and what retained profit would have been if the change was applied to all influenced earlier periods, accepting comparative financial statements are not exhibited. Starting retained profit of the earliest year exhibited is balanced for the cumulative impact of the change.
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