Unit 5: Interim Reporting

Question 1

(T/F). PAS 34 prescribes the minimum content of an interim financial report as well as the principles for recognition and measurement in complete or condensed FS for an interim period.

Answer 1

True.

Question 2

(T/F). Publicly-listed entities are encouraged to provide interim financial reports at least semiannually. Such reports are to be made available not later than 45 days after the end of the interim period.

Answer 2

Partially true; however, such reports are to be made available not later than 60 days after the end of the interim period.

Question 3

(T/F). PAS 34 assumes that FS users have access to the etntity’s most recent annual report.

Answer 3

True.

Question 4

The ____ and the _____ require entities covered by the Revised Securities Act to file quarterly interm financial reports within ____ days after the end of each of the first three quarters.

Answer 4

SEC; PSE; 45 days.

Question 5

(T/F). Under the integral view on interim reporting, estimation and allocation are not necessary to avoid creating misleading fluctuations in interim period income.

Answer 5

False. Estimation and allocation are necessary under the integral view.

Question 6

(T/F). Using the integral view would result to interim income which would be more indicative of the annual income and thus useful in predicting future operations and making informed decisions.

Answer 6

True.

Question 7

(T/F). According to the independent view on interim reporting, each interim period is considered a discrete or separate accounting period with a status equal to that of a fiscal year.

Answer 7

True.

Question 8

(T/F). Under the integral view, no estimations or allocations are made for interim purposes unless such are allowed for annual reporting.

Answer 8

False; independent view.

Question 9

(T/F). The selected explanatory notes are designed to provide an explanation of significant happenings arising since the last annual FS.

Answer 9

True.