FAR 1 - Interim Financial Reporting

Question 1

Is interim financial reporting required under U.S. GAAP or SEC?

Answer 1

GAAP doesn’t required interim reporting, however SEC wants quarterly reports

Question 2

What qualitative characteristic is emphasized?

Answer 2

Timeliness over reliability - because unaudited

Question 3

How are income taxes estimated?

Answer 3

Estimate of the effective tax rate to be expected for full fiscal year

Question 4

U.S. GAAP vs IFRS difference for effective tax rate?

Answer 4

IFRS allows the effective tax rate to be estimated using enacted or substantially enacted changes in tax rate

U.S. GAAP allows the use of enacted tax rates only