Interim Financial Reporting Flashcards
1
Q
How are routine expenses reported under interim reporting?
A
Allocate to quarters
Ex: property taxes, bonuses, depreciation
2
Q
How are inventory losses reported under interim reporting?
A
In that quarter
3
Q
How are major expenses reported under interim reporting?
A
In that quarter, unless benefits future quarters - then allocate
4
Q
How are discontinued operations reported under interim reporting?
A
In that quarter
5
Q
How is income tax expense reported under interim reporting?
A
Estimated each quarter using the rate expected for the entire year
(Year to date income x effective annual rate) - income tax previously recognized
