A system of nonlinear partial differential equations is considered that models perturbations in a layer of an ideal electrically conducting rotating fluid bounded by spatially and temporally varying surfaces with allowance for inertial forces and diffusion of magnetic field. The system is reduced to a scalar equation. The solvability of initial boundary value problems arising in the theory of waves in conducting rotating fluids can be established by analyzing this equation. Solutions to the scalar equation are presented that describe small-amplitude wave propagation in an infinite horizontal layer and a long narrow channel.