FAR 20 - INTERIM FINANCIAL REPORTING

Question 1

A planned volume variance that occurs in one interim period that is expected to be absorbed in a future interim period within the same fiscal year should be…..

Answer 1

deferred in the period in which it occurs, and offset in the period in which it is absorbed

Question 2

In general, declines in the value of inventory are recognized int he interim period in which they occur, unless…

Answer 2

unless they are expected to be recovered in a subsequent interim period.

Losses are only recognized if expected to be permanent

Question 3

In the year that a segment is agreed to be discontinued, what do you include the loss from disposal in the year of the decision?

Answer 3

the decision year’s loss from operations and the asset impairment loss (the sum of these will be reported net of tax)

Question 4

are general corporate expenses allocated?

Answer 4

no

Question 5

Disclosure of segment information is required if 10% or more of total revenues are derived from…

Answer 5

1. sales to a single customer

2. Export sales/sales from foreign operations

Question 6

When a publicly traded entity has reportable segments, it is required to report…..

Answer 6

1. the segment’s profit or loss

2. the segment’s total assets

Question 7

Does GAAP and IFRS use the same segment tests?

Answer 7

yes (revenue, assets, profit and loss)