F1 - Interim Financial Reporting

Question 1

Who mandates interim financial reporting in the US?

Answer 1

The SEC

Question 2

What enhancing qualitative characteristic does interim reporting emphasize?

Answer 2

Timeliness over reliability (hence, unaudited financials)

Question 3

What is the minimum requirements established by GAAP for interim reporting?

Answer 3

There are none

Question 4

How are income taxes estimated in interim reporting?

Answer 4

YTD income multiplied by the effective (enacted (GAAP) or substantially enacted (IFRS)) tax rates subtracted from the prior period’s tax provision

Question 5

What tax rate should be used to calculate the estimated tax expense for each quarter?

Answer 5

The tax rate expected to apply to the entire year