Interim Financial Reporting

Question 1

What is PAS 34?

Answer 1

Interim Financial Reporting

Question 2

How can interim financial reports be presented?

Answer 2

Monthly
Quarterly
Semiannually

Question 3

What is the most common presentation of interim financial reports?

Answer 3

Quarterly

Question 4

Publicly traded entities are encouraged to provide interim financial reports at least ____________.

Answer 4

Semiannually

Question 5

Publicly traded entities’ semiannual reports are to be made available not later than how many days after the end of the interim period?

Answer 5

60

Question 6

True or False: PAS 34 does not mandate which entities are required to publish interim financial reports, how frequently, or how soon after the end of an interim period.

Answer 6

True

Question 7

Which bodies require entities covered by the reportorial requirements of Revised Securities Act to file quarterly interim financial reports?

Answer 7

SEC and PSE

Question 8

Entities covered by the reportorial requirements of which act are required to file quarterly interim financial reports?

Answer 8

Revised Securities Act

Question 9

Those entities covered by the reportorial requirements of Revised Securities Act are required to file which kind of interim financial reports?

Answer 9

Quarterly

Question 10

At how many days after the end of each of the first three quarters are entities covered by the Revised Securities Act required to file their interim financial reports?

Answer 10

45 days

Question 11

Which entities are required by the SEC to file quarterly financial reports within 45 days after each quarter end?

Answer 11

Those covered by:
1. Revised Securities Act
2. Rules on Commercial Papers and Financing Act

Question 12

What are the two views on interim financial reporting?

Answer 12

Integral view
Independent view

Question 13

Under this view, annual operating expenses are estimated and then allocated to the interim period based on forecasted revenue or sales volume.

Answer 13

Integral view

Question 14

Under this view, costs incurred which clearly benefit the entire year are allocated to the interim periods benefited.

Answer 14

Integral view

Question 15

Using the integral view would result to what kind of income?

Answer 15

Interim income

Question 16

This kind of income is more indicative of the annual income.

Answer 16

Interim income

Question 17

This view is that each interim period is considered a discrete or separate accounting period with status equal to a fiscal year.

Answer 17

Independent view

Question 18

Under this view, no estimations or allocations are made for interim purposes, unless such estimations or allocations are allowed for annual reporting.

Answer 18

Independent view

Question 19

When are estimations or allocations made for interim purposes under the independent view?

Answer 19

When these estimations or allocations are allowed for annual reporting

Question 20

Under this view, annual operating expenses are recognized in the interim period when incurred, meaning accruals or deferrals are not used.

Answer 20

Independent view

Question 21

True or False: PAS 34 mentions the integral and independent views.

Answer 21

False

Question 22

Which view is adopted by the standard?

Answer 22

A mix of both integral and independent

Question 23

What are the inclusions, at a minimum, for interim financial reports?

Answer 23

Condensed:
1. SFP
2. CI
3. CIE
4. CF
5. Selected explanatory notes

Question 24

Does PAs 34 allow an entity to publish a set of condensed financial statements or complete set of financial statements in the interim financial report?

Answer 24

Yes. It allows both.

Question 25

True or False: PAS 34 prohibits entities to present a complete set of financial statements and requires only the presentation of condensed financial statements.

Answer 25

False. It allows a complete set of FS

Question 26

What does "condensed" mean?

Answer 26

Each of the headings and subtotals presented in the entity's most recent annual FS is required without requirement to include greater detail

Question 27

Is an entity required to disclose compliance with PFRS of its interim financial reports?

Answer 27

Yes

Question 28

These are designed to provide an explanation of significant events and transactions arising since the last annual FS.

Answer 28

Selected explanatory notes

Question 29

True or False: PAS 34 assumes that FS users have access to the entity's most recent annual report.

Answer 29

True

Question 30

Should an entity include the same notes in the interim financial report that appeared in the most recent annual financcial report.

Answer 30

No. It is deemed unnecessary by the standard

Question 31

How are comparative interim SFPs presented?

Answer 31

1. SFP at the end of current interim period. 2. Comparative SFP at the end of preceding year

Question 32

How are comparative interim income statements presented?

Answer 32

1. IS for the current interim period. 2. IS cumulatively for the current financial year to date 3. Comparative IS for the comparable interim period of the preceding year 4. Comparative IS cumulatively for the comparable financial year to date of the preceding year

Question 33

How are comparative interim statement of comprehensive income presented?

Answer 33

1. SCI for the current interim period. 2. SCI cumulatively for the current financial year to date 3. Comparative SCI for the comparable interim period of the preceding year 4. Comparative SCI cumulatively for the comparable financial year to date of the preceding year

Question 34

How are comparative interim statement of changes in equity presented?

Answer 34

1. SCE cumulatively for the current financial year to date 2. Comparative SCE for the comparable financial year to date of preceding year

Question 35

How are comparative interim statement of cash flows presented?

Answer 35

1. SCF cumulatively for the current financial year to date 2. Comparative SCF for the comparable financial year to date of preceding year

Question 36

Measurements for interim reporting purposes shall be made on what basis?

Answer 36

Year to date

Question 37

True or False: The preparation of interim financial reports generally requires a grater use of estimation than annual financial reports.

Answer 37

True

Question 38

How are inventories measured?

Answer 38

Lower of NRV and cost

Question 39

True or False: Full inventory and valuation procedures are required for inventories at interim date.

Answer 39

False. Not required cla

Question 40

If the NRV is lower than cost, what is recognized?

Answer 40

Loss on inventory writedown

Question 41

Should you recognize a loss on inventory write down if it is only temporary?

Answer 41

Yes