Interim Financial Reporting

Question 1

SEC requirment

Answer 1

Not required by GAAP or IFRS but by SEC if it is a publicly traded company

Question 2

GAAP

Answer 2

certain practices and principles from the annual reporting practices can be modified

Question 3

IFRS

Answer 3

Same practices and principles used in the most recent financial statements should be used

Question 4

Matching revenues and expenses

Answer 4

Use the same methods as annual; ACCRUAL*

Question 5

Integral part

Answer 5

GAAP: no minimum required
IFRS: min certain number of balance sheets certain i/s etc.

Question 6

Income tax

Answer 6

1)Effective tax rate as established at the end of second quarter for second quarter income statement
2)( YTD income * est. effective tax rate) - provision included in previous quarter/s
3)GAAP: can only use enacted tax rate
IFRS: can be estimated using enacted or substantially enacted tax rate