Final answer:
Changes in accounting principles are not shown on the income statement after extraordinary items because the concept of extraordinary items has been eliminated from GAAP. Adjustments are made retrospectively to the beginning retained earnings of the earliest period presented.
Step-by-step explanation:
The cumulative effect of a change in accounting principle is typically accounted for by restating prior period financial statements, so that all statements are presented under the same accounting framework. This treatment aligns with the principle of consistency in accounting, ensuring comparability across periods. However, when it comes to presenting these changes on the income statement, they are not depicted after extraordinary items, primarily because the concept of extraordinary items has been eliminated from U.S. GAAP (Generally Accepted Accounting Principles) under Accounting Standards Update 2015-01. Changes in accounting principles are now generally included in the income statements as retrospective adjustments to the beginning retained earnings of the earliest period presented, unless the transition guidance requires a different treatment.