Section 20 - Interim Financial Reporting Flashcards Preview

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Flashcards in Section 20 - Interim Financial Reporting Deck (10):
1

What is interim financial reporting statements emphasizing (conceptually)?

Timeliness over reliability

2

When computing income taxes at an interim date, which tax rate should be used?

Effective ANNUAL tax rate

3

Is income tax expense estimated in each quarter?

Yes using the rate expected for the entire year

4

Should inventory be written down at an interim date if it is EXPECTED to recover by the end of the year?

No

5

Should inventory be written down at an interim date if it is NOT EXPECTED to recover by the end of the year?

Yes and write down should happen in the quarter the loss happened

6

What items are allocated in all quarters for interim report?

-Property taxes
-Bonuses
-Depreciation

7

What items are allocated in that quarter as it happens?

-inventory losses
-major expenses - unless benefit future quarters then allocate
-discontinued operations
-extraordinary gain/loss

8

What is required for Form 10-Q?

1) Interim Balance Sheet
2) Interim Income Statement
3) Interim Statements of Cash Flows
4) Statement of changes in equity

9

When are Form 10-Q due?

40 days after end of fiscal quarter for Accelerated and Large Accelerated Filers

45 days for Non-Accelerated Filers

10

Is interim reporting required under IFRS?

No, however, if an entity chooses to issue them, they must include the following:

1) State of Financial Position
2) Statements of Profit or loss and Other Comprehensive Income
3) Statement of changes in equity
4) Statement of Cash Flows
5) Selected Notes