INTERIM FINANCIAL REPORTING Flashcards
- Interim financial reports shall be published
a. Once a year at any time during the year.
b. Within a month of the half year-end.
c. On a quarterly basis.
d. Whenever the entity wishes.
d. Whenever the entity wishes.
- If an entity does not prepare interim financial reports
a. The year-end financial statements are deemed not to comply with IFRS.
b. The year-end financial statements’ compliance with IFRS is not affected.
c. The year-end financial statements shall not be acceptable under local jurisdiction.
d. Interim financial reports shall be included in the year-end financial statements.
b. The year-end financial statements’ compliance with IFRS is not affected.
- Interim financial reports shall include as a minimum
a. A complete set of financial statements.
b. A condensed set of financial statements and selected notes.
c. A condensed statement of financial position and an income statement.
d. A condensed statement of financial position, income statement and statement of cash flows.
b. A condensed set of financial statements and selected notes.
- An interim financial report shall include as a minimum all of the following components, except
a. Condensed statement of financial position and statement of comprehensive income
b. Condensed statement of cash flows
c. Condensed statement of changes in equity
d. Accounting policies and explanatory notes
d. Accounting policies and explanatory notes
- There is a presumption that anyone reading interim financial reports shall
a. Understand all International Financial Reporting Standards.
b. Have access to the records of the entity.
c. Have access to the most recent annual report.
d. Not make decisions based on the report.
c. Have access to the most recent annual report.
- When the business is seasonal, what does IFRS suggest?
a. Additional notes be written in the interim reports about seasonal nature of the business
b. Disclosure of financial information for the latest 12- month period and comparative information for the prior comparable 12-month period in addition to the interim report
c. Additional disclosure in the accounting policy note
d. No additional disclosure
b. Disclosure of financial information for the latest 12- month period and comparative information for the prior comparable 12-month period in addition to the interim report
- Which statement is true regarding interim reporting?
a. The independent view is required for interim financial statements.
b. Interim reports are required on a quarterly basis.
c. Interim reports are not required.
d. Interim reports require the preparation of only a statement of comprehensive income and a statement of financial position.
c. Interim reports are not required.
- Which basic financial statements are prepared as a minimum for interim financial reporting?
a. Statement of financial position and income statement
b. Statement of financial position, income statement and statement of comprehensive income
c. Statement of financial position, statement of comprehensive income and statement of cash flows
d. Statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity
d. Statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity
- An entity is preparing interim financial statements for six months ended June 30, 2023. In the interim financial statements for six months, a statement of financial position on June 30, 2023, a statement of comprehensive income for six months ended June 30, 2023 and statement of cash flows for six months ended June 30, 2023 shall be presented. In addition, all of the following shall be presented, except
a. Statement of financial position on June 30, 2022
b. Statement of financial position on December 31, 2022
c. Statement of comprehensive income for six months ended June 30, 2022
d. Statement of cash flows for six months ended June 30, 2022
a. Statement of financial position on June 30, 2022
- Which statement about an interim report is true?
a. An interim financial report must consist of a complete set of financial statements.
b. An interim financial report must consist of a condensed set of financial statements.
c. An interim financial report may consist of a condensed set or complete set of financial statements.
d. All of these statements are true.
c. An interim financial report may consist of a condensed set or complete set of financial statements.
- Interim financial statements are usually presented on a
a. Monthly basis
b. Quarterly basis
c. Semiannual basis
d. Nine-month basis
b. Quarterly basis
- For interim reporting, an inventory loss from a market decline in the second quarter shall be recognized
a. In the fourth quarter
b. Proportionately in each of the second, third and fourth quarters
c. Proportionately in each of the first, second, third and fourth quarters
d. In the second quarter
d. In the second quarter
- It is appropriate to use estimated gross profit rate to determine the cost of goods sold for
a. Interim reporting
b. Year-end reporting
c. Interim reporting and year-end reporting
d. Neither interim reporting nor year-end reporting
a. Interim reporting
- For interim financial reporting, an expropriation gain occurring in the second quarter shall be
a. Recognized ratably over the last three quarters
b. Recognized ratably over all four quarters with the first quarter being restated
c. Recognized in the second quarter
d. Disclosed in the second quarter
c. Recognized in the second quarter
- For interim financial reporting, the income tax expense for the second quarter should be computed by using the
a. Statutory tax rate for the year.
b. Effective tax rate expected or the second quarter.
c. Effective tax rate expected for the full year as estimated at the end of the first quarter.
d. Effective tax rate expected for the full year as estimated at the end of the second quarter.
a. Statutory tax rate for the year.
- Advertising costs incurred shall be deferred to provide an appropriate expense in each period for
a. Interim reporting
b. Year-end reporting
c. Interim reporting and year-end reporting
d. Neither interim reporting nor year-end reporting
d. Neither interim reporting nor year-end reporting
- Due to a decline in market price in the second quarter, an entity incurred an inventory loss. The market price is expected to return to previous level by year-end. At year-end, the decline had not reversed. When should the loss be reported in the interim income statement?
a. Ratably over the second, third and fourth quarters
b. Ratably over the third and fourth quarters
c. In the second quarter
d. In the fourth quarter
c. In the second quarter
- Interim statements can be described as emphasizing
a. Timeliness over reliability
b. Reliability over relevance
c. Relevance over comparability
d. Comparability over neutrality
a. Timeliness over reliability
- Interim financial reporting should be viewed
a. As a type of reporting that need not follow IFRS
b. As useful only if activity is evenly spread throughout the year so that estimates are unnecessary.
c. As reporting for an integral part of an annual period.
d. As reporting for a separate accounting period.
c. As reporting for an integral part of an annual period.
- Which statement about interim reporting is true?
a. All entities that issue an annual report must issue interim financial report.
b. The integral view is the appropriate approach in preparing interim financial report.
c. A complete set of financial statements must be presented for an interim period.
d. The same accounting principles used for the annual report should be employed for interim report.
d. The same accounting principles used for the annual report should be employed for interim report.
