Chapter 1 Section 9: Interim Financial Reporting Flashcards
1
Q
Is interim reporting required under GAAP or IFRS?
Why do we have them?
A
no
Quarterly reports are required by the SEC
2
Q
What accounting principles should be applied to interim reports?
A
GAAP principles that were used in the most recent annual report
3
Q
What is the emphasis of interim statements?
Are they audited?
A
Timeliness over reliability
No
4
Q
What rate should be applied for income taxes?
A
The estimated effective tax rate expected to be applicable for the full year as of the most recent quarter. Multiply this by year-to-date income and subtract from that what has already been accounted for.
