Flashcards in Section 20 - Interim Financial Reporting Deck (10):
What is interim financial reporting statements emphasizing (conceptually)?
Timeliness over reliability
When computing income taxes at an interim date, which tax rate should be used?
Effective ANNUAL tax rate
Is income tax expense estimated in each quarter?
Yes using the rate expected for the entire year
Should inventory be written down at an interim date if it is EXPECTED to recover by the end of the year?
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
What items are allocated in all quarters for interim report?
What items are allocated in that quarter as it happens?
-major expenses - unless benefit future quarters then allocate
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
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