Final answer:
An entity is not required to present an additional statement of financial position at the beginning of the preceding period when it changes the frequency of its reporting, such as moving from annual to bi-annual reports.
Step-by-step explanation:
When it comes to financial reporting, an entity is generally required to present comparative financial statements that include the current period and the comparable amounts for each prior period presented. However, the specific situation in which an entity is not required to present an additional statement of financial position as of the beginning of the preceding period is when the entity changes the frequency of its reporting. For example, if an entity transitions from annual reporting to bi-annual reporting, it is not required to provide an opening statement of financial position for the comparative period. Conversely, when an entity changes an accounting policy or makes a correction of a prior period error, it usually needs to restate its opening statement of financial position to reflect the retrospective application of those changes, which ensures comparability and transparency. A reclassification adjustment generally does not require a third statement of financial position unless it is correcting an error or resulting from a change in accounting policy that requires restatement.