Final answer:
The effect of an accounting change on prior periods due to a new 30% income tax rate would be reflected in the current period's financials if comparative statements are not reissued. The prior period's income would be adjusted by the net change after the tax effect. The specific increase cannot be determined without additional information on prior net income.
Step-by-step explanation:
The effect of an accounting change on prior periods when a new income tax rate of 30% is applied retroactively can be complex and depends on the specifics of the prior accounting methods and taxable income. If comparative statements are not issued, the effect is typically included in the current period's financial statements. Since the specific impact on the prior period's net profit or loss is not provided, it's not possible to give a definitive number for the increase. However, to understand the potential effect of a tax change, one would adjust the prior net income to reflect the new tax rate and calculate the difference.
Assuming the accounting change refers to a correction of an error in previously issued financial statements, the adjustment would be to restate the prior period earnings net of tax. The income would be increased by the net amount of the error after applying the 30% tax rate. It is essential to understand the principles behind the change in income taxes and how it affects the accounting records.