Interim Reporting Principles

Question 1

T/F: Interim financial statements are required to be audited?

Answer 1

False- they are not required.

Question 2

T/F: The SEC requires interim reporting for public companies?

Answer 2

True- they are required.

Question 3

T/F: If there are expenses that benefit more than one period, you are allowed to allocate those expenses across all periods.

Answer 3

True- Annual repair was paid in one quarter but you can allocate it across all four quarters

• Examples: Income Taxes or repair and maintenance

Question 4

What are exceptions to the integral view:

Answer 4

Theses items you do not allocate over the entire year

• Gains or losses on disposals
• Discontinued operations
• Impairment losses

Question 5

Temporary inventory declines are reported on which set of financial statements (interim or annual)

Answer 5

Temporary declines in inventory are reported on the annual financial statements, not on the interim financial statements.